(Adds comment from Kinder Morgan, group opposing project)
By Ethan Lou
CALGARY, Alberta, June 16 Kinder Morgan Canada
Ltd has raised C$5.5 billion ($4.16 billion) for its
Trans Mountain pipeline expansion and could have raised even
more, the company said on Friday, despite pressure on banks to
back away from the project.
"The syndication of the credit facilities was
oversubscribed," company President Ian Anderson said in the
statement. "We are gratified by the outstanding level of support
for this project within the financial community."
Energy infrastructure projects have faced opposition from
environmental groups and aboriginal communities whose land they
touch. Opposition to Trans Mountain is set to mount after the
effective rise of an unfriendly government last month in
Canada's British Columbia province that the pipeline passes.
According to the company's statement, Kinder Morgan Canada,
majority owned by Houston-based Kinder Morgan Inc, has
entered into agreements for C$4.0 billion in revolving credit,
C$1 billion in contingent credit and C$500 million in revolving
Kinder Morgan Canada did not specify the source of the
credit, although it said the funds would come from a group of
banks, some of which underwrote its public offering last month.
Toronto-Dominion Bank and Royal Bank of Canada
were the main underwriters, according to Kinder Morgan's
A group of more than 20 indigenous and environmental
organizations this month called on 28 major banks, including all
underwriters, to back away from Trans Mountain.
Ruth Breech, senior campaigner for Rainforest Action
Network, one of the groups, said by phone the banks' backing of
Trans Mountain was disappointing.
"We'll be committed to challenging this project all the way
through," she said. "There'll absolutely be follow-up
discussions with those banks."
Ratings agency DBRS Ltd on Friday placed Kinder Morgan
Cochin ULC, the Canadian parent company's operating subsidiary,
The Trans Mountain expansion has "execution risks" including
political and environmental opposition, the agency said. "In its
rating assessment, DBRS has conservatively assumed a project
delay of one year."
The expansion almost triples the capacity of the existing
pipeline, which is designed to carry crude from Canada's oil
sands to the West Coast.
The expansion has obtained both federal and regulatory
approvals and has passed an environmental assessment under
British Columbia's incumbent Liberal Party, which lost its
legislative majority in a May 9 election.
The opposition Greens and New Democrats parties, both of
which oppose Trans Mountain's expansion, have sealed a deal to
unseat the Liberals.
($1 = 1.3211 Canadian dollars)
(Reporting by Ethan Lou; editing by Diane Craft, G Crosse)