The sale of Trans Mountain Pipe Line Co. Ltd. is expected to be one of the largest commercial transactions in Canadian history, but there is some uncertainty around what the present value of the pipeline actually is
The CEO of Pembina Pipeline Corp. says the company needs more certainty over timing, regulations and costs related to the Trans Mountain Pipe Line Co. Ltd. expansion project before deciding whether to make an offer for an equity stake in the pipeline.
Ottawa bought the Trans Mountain Pipe Line Co. Ltd. pipeline, Canada’s only pipeline system that transports oil from Alberta to the west coast, in 2018 to ensure a planned expansion would be completed after previous owner Kinder Morgan Canada Inc. threatened to scrap the project. Phase two will involve the consideration of commercial offers for the remaining stake in the pipeline, but Burrows said the timing of that is unclear.
“Pembina, like any other prudent commercial purchaser, requires the many outstanding issues related to the project to crystallize in order to prudently and appropriately assess the opportunity and determine next steps.” In addition, Trans Mountain Pipe Line Co. Ltd. is currently negotiating with oil companies the pipeline tolls – fees oil shippers pay to move oil on the pipeline. Those tolls are the way the pipeline earns revenue, and will have a direct impact on the amount a prospective buyer is willing to pay.
This week, the Canada Energy Regulator issued a temporary stop-work order on the project due to what it said was Trans Mountain Pipe Line Co. Ltd.’s environmental non-compliance related to a wetland near Abbotsford, B.C.
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Pembina Pipeline needs Trans Mountain certainty before considering an offer: CEOCALGARY — The CEO of Pembina Pipeline Corp. says the company needs more certainty over timing, regulations and costs related to the Trans Mountain expansion project before deciding whether to make an offer for an equity stake in the pipeline.
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Pembina Pipeline needs Trans Mountain certainty before considering an offer: CEOCALGARY — The CEO of Pembina Pipeline Corp. says the company needs more certainty over timing, regulations and costs related to the Trans Mountain expansion ...
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