Kinder Morgan Canada on Sundaysuspended most work on a contentious C$7.4 billion ($5.80billion) pipeline expansion project that has become the focus ofprotests and said it would decide by May 31 whether to pressahead.
The firm wants to nearly triple the capacity of its existingTrans Mountain pipeline, which takes crude from Alberta's oilsands to a facility in the Pacific province of British Columbia.It is currently carrying out preliminary work and has not yetstarted construction. The project is considered crucial for Canada's oil industry,but is fiercely opposed by the British Columbia government, manymunicipalities, some Aboriginal groups, and environmentalactivists concerned about possible oil spills. "We will be judicious in our use of shareholder funds. Inkeeping with that commitment, we have determined that in thecurrent environment, we will not put KML shareholders at risk onthe remaining project spend," Kinder Morgan Chairman Steve Keansaid in a statement. The announcement is a blow for the Liberal government ofPrime Minister Justin Trudeau, which approved the project andsays it is in the national interest. Natural Resources Minister Jim Carr said in a statement that"with all our partners, we continue to consider all availableoptions". He did not give details. (Reporting by David Ljunggren in Ottawa, Julie Gordon inVancouver and Bhanu Pratap in Bengaluru; Editing by DavidGregorio)