Kinder Morgan Canada Ordered To Stop Some Work On Pipeline Expansion
CALGARY, Alberta, Sept 26 (Reuters) - Canada's energy regulator has ordered Kinder Morgan Canada Ltd to stop some work on its Trans Mountain pipeline expansion, after a public company blog post showed it had been conducting activities that had "not yet been approved."
In a letter sent on Friday, the National Energy Board (NEB) said Kinder Morgan has started work along the pipeline portion of the project, which the company is not yet allowed to do, and that it has to stop. The letter was filed to the NEB's website. (http://bit.ly/2wUAXD3)
"We will be responding to the NEB’s correspondence and are finding the best path forward," Kinder Morgan spokeswoman Ali Hounsell said.
The C$7.4 billion ($5.9 billion) project, which would twin the current Trans Mountain pipeline, faces opposition from environmental and aboriginal groups and the provincial government of British Columbia, through which the pipeline passes.
While the project has federal approval, work on the pipeline itself cannot begin until the NEB determines its precise route, a process that has no firm conclusion date. The regulator has so far granted permission only for work on a coastal marine terminal, whose capacity needs to be increased to handle the extra crude from the expansion.
Kinder Morgan Canada, a unit of Houston-based Kinder Morgan Inc, has blogged frequently about its efforts to engage communities along the pipeline route and actions for the environment.
In a post this month, it wrote about installing devices to deter fish from spawning around construction areas for the project. The post included plans to install similar devices at another 21 sites. (http://bit.ly/2wUvvzR)
The regulator became aware of the issue through multiple sources, including Trans Mountain's website, NEB spokesman James Stevenson said.
When asked whether there will be any penalties for Kinder Morgan, he said: "We are continuing to gather more information about this matter, and it could result in further enforcement activity."
The Trans Mountain expansion would nearly triple the capacity of the existing pipeline from Canada's oil heartland of Alberta to the west coast.
Canadian crude producers say their landlocked product needs more pipeline capacity to fetch better prices. Those opposing the project say they are concerned about its potential impact on climate change and increased possibility of spills.
The Federal Court of Appeal will hear next week in Vancouver a legal challenge that could overturn Trans Mountain's approval.
(Reporting by Ethan Lou; Editing by Steve Orlofsky and Lisa Shumaker)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- USA Energy Sec Leads Meeting with 7 Major Oil Companies
- Russian Oil Isn't Dead Yet
- Top Headlines: USA Navy and Iran Corps Clash in Strait of Hormuz and More
- US Gas Production Up 2 Pct In Q2, S&P Global Platts Says
- Sunak Stands Firm on UK Oil Windfall Tax
- Recession Talk Reigns Supreme
- Coretrax Completes Expandable Technology Project In USA
- ABB Systems Chosen For Northern Lights CCS Project
- OGDCL Makes Oil and Gas Discoveries
- Oil Dive Will Not Bring Any Immediate Relief on Inflation
- USA Navy and Iran Corps Clash in Strait of Hormuz
- Russian Oil Disappears as Tankers Go Dark
- Diesel Price Shock Imminent As Reserves Drop, Refining Lags
- USA Refinery Capacity Drops
- USA Gasoline Price Falls
- ConocoPhillips Makes Norway Gas Discovery
- USA Energy Sec Leads Meeting with 7 Major Oil Companies
- These Are the Largest Energy Companies by Market Cap Right Now
- Oil and Gas Lease Sales in Wyoming, Colorado, New Mexico Pushed Back
- $150 Oil Could Still Happen. Here's How.
- USA Navy and Iran Corps Clash in Strait of Hormuz
- Oil Industry Responds to Biden Letter
- Rapidly Decaying Supertanker Could Explode at Any Time
- Oil Nosedives on Fed Inflation Actions
- Top Headlines: ADNOC Announces 650MM Barrel Oil Find and More
- Bankrupt Sri Lanka Takes Russia Oil
- Biden To Restart Idle Refineries To Tame Fuel Prices
- Top Headlines: Oil Industry Responds to Biden Letter and More
- Iran Seizes 2 Greek Tankers
- Too Early To Speculate on ExxonMobil Refinery Fire Cause