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Kinder Morgan closes $4.16bn credit facilities for Trans Mountain pipeline expansion

EBR Staff Writer Published 19 June 2017

Kinder Morgan Canada (KML) has raised C$5.5bn ($4.16bn) through three credit facilities for financing its Trans Mountain pipeline expansion project.

KML, indirectly through its affiliates, has agreed to raise C$4bn ($3.02bn) revolving construction credit facility which will be used for funding the development, construction and completion of the Canadian pipeline expansion project.

It has also closed a C$1bn ($760m) revolving contingent credit facility to be used for funding. If needed, the amount will also cover additional project costs.

Additionally, the company has closed a C$500m ($378m) revolving working capital facility which will be used for general corporate purposes, including working capital. All three credit facilities have been closed  with a term of five years.

Last month, Kinder Morgan, the parent company of KML said that it would go ahead with the $5.5bn Trans Mountain pipeline expansion despite opposition to the project. The expansion of the pipeline will increase the existing capacity of pipeline from 300,000 barrels of oil per day (bpd) to 890,000 bpd.

Trans Mountain expansion project has already received approval from the Canadian government on 29th November, 2016 which will transport crude oil from oil sand region of Canada to the West Coast.

Trans Mountain Pipeline system was laid between Edmonton in Alberta and Burnaby in British Columbia in 1953.

According to the company, the Trans Mountain pipeline expansion project is scheduled to start in September and completed by 2019 end.