Trans Mountain Files Toll Application with National Energy Board for Proposed Expansion Project

abarrelfullabarrelfull wrote on 02 Jul 2012 05:32
Tags: canada kinder-morgan n-america pipeline

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Trans Mountain Pipeline ULC (Trans Mountain), operated by Kinder Morgan Canada and owned by Kinder Morgan Energy Partners, L.P. (NYSE: KMP), today filed an application for National Energy Board (NEB) approval of the contract terms and toll structure that would be implemented on the company's proposed Trans Mountain expansion project.

The NEB is an independent federal agency that regulates tolling, construction and operation of Canadian pipelines that cross international or interprovincial boundaries. "This application to the NEB is about the contracts and fee structure that will be charged to shippers who will move product through the proposed expanded pipeline," said Ian Anderson, president of Kinder Morgan Canada. "This application is not about approving proposed routing or construction of the proposed expansion project-that is a separate application that we expect to file in late 2013."

The "Toll Application" is being submitted now to provide regulatory and market certainty to customers and Trans Mountain about the future toll structure if the proposed expansion is approved. The application would set tolls and terms for 20 years, the same period for which customers signed contracts through the open season process.

"Our application also confirms the binding commercial support we have from nine significant participants in the Canadian producing and oil marketing business. We are extremely pleased to have BP Canada Energy Trading Company, Canadian Oil Sands Limited, Cenovus Energy Inc., Devon Canada Corporation, Husky Energy Marketing Inc., Imperial Oil Limited, Nexen Marketing Inc., Statoil Canada Ltd. and Tesoro Canada Supply & Distribution Ltd. all committed to supporting the expansion of the Trans Mountain pipeline," Anderson said.

"We are in the very early stages of our comprehensive studies and engagement program for the proposed expansion," Anderson explained. "We have a lot of work ahead of us as we talk with landowners, Aboriginal groups, communities and stakeholders. We value this discussion and consider it critical to our planning. We will carefully consider the input received during the extensive period of study and dialogue in our project plans."

Kinder Morgan Canada expects to file a "Facilities Application" with the NEB in late 2013, which will ask the NEB for authorization to build and operate the necessary facilities for the proposed Trans Mountain expansion project. The facilities application will include the environmental, socio-economic, Aboriginal engagement, landowner and public consultation, and engineering components of the proposed expansion project. Filing the facilities application will initiate a comprehensive regulatory and public review of the proposed expansion project.

In spring 2012, Kinder Morgan Canada announced it would move forward with its proposed plans to expand the existing Trans Mountain pipeline system-between Edmonton, Alberta, and Burnaby, British Columbia-following strong commitments received from its customers. The proposed $4.1 billion project would increase capacity on Trans Mountain from approximately 300,000 to 750,000 barrels per day. For almost 60 years, the 1,150-km Trans Mountain pipeline system has been safely and efficiently providing the only West Coast access for Canadian oil products, including about 90 percent of the gasoline supplied to the interior and south coast of British Columbia. For more information, please visit

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