Kinder Morgan Canada is suspending all non-essential activities and related spending on the Trans Mountain Expansion Project.
They say they cannot move forward under the current circumstances, specifically including the continued actions in opposition to the project by the Province of British Columbia.
KML will consult with various stakeholders in an effort to reach agreements by May 31st that may allow the project to proceed.
"We will be judicious in our use of shareholder funds," said Chairman and CEO Steve Kean. "In keeping with that commitment, we have determined that in the current environment, we will not put KML shareholders at risk on the remaining project spend."
The Project has the support of the Federal Government and the Provinces of Alberta and Saskatchewan but faces continued active opposition from the government of British Columbia.
"A company cannot resolve differences between governments. While we have succeeded in all legal challenges to date, a company cannot litigate its way to an in-service pipeline amidst jurisdictional differences between governments," added Kean.
"Today, KML is a very good midstream energy company, with limited debt. The uncertainty as to whether we will be able to finish what we start leads us to the conclusion that we should protect the value that KML has, rather than risking billions of dollars on an outcome that is outside of our control," Kean said.
"To date, we have spent considerable resources bringing the Project to this point and recognize the vital economic importance of the Project to Canada. Therefore, in the coming weeks we will work with stakeholders on potential ways to continue advancing the Project consistent with the two principles previously stated."
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