“Upon the completion of the IPO, we will have secured satisfactory financing for the Trans Mountain Expansion Project. We are excited to be moving forward on this tremendous project which is expected to benefit KMI and KML as well as our Trans Mountain shippers and Canada,” said Steve Kean, Kinder Morgan chief executive officer.
The Trans Mountain Expansion Project is a C$7.4 billion project which upon completion will provide western Canadian oil producers with an additional approximately 590,000 barrels per day (resulting in total pipeline capacity of 890,000 barrels per day) of shipping capacity and tidewater access to the western United States and global markets.
Construction on the oil pipeline project is expected to begin in September 2017 with completion expected in December 2019.
The final investment decision was contingent on securing financing. While the political climate was not ideal, the process proceeded at this time because the Trans Mountain Expansion Project financing contingency period, as specified in shipper agreements, concludes at the end of May.
“Our execution planning is complete, our approvals are in hand, and we are now ready to commence construction activities this fall generating thousands of direct jobs for Canadians, including significant benefits to Indigenous communities in Alberta and British Columbia,” said Ian Anderson, president of Kinder Morgan Canada Limited.
During construction of the Project, the anticipated workforce will reach the equivalent of 15,000 jobs per year, followed by the equivalent of a further 37,000 direct, indirect and induced jobs per year of operations.
From planning and permitting, to clearing, digging trenches and testing the new pipe, building a new pipeline requires a variety of skilled workers. The majority of jobs will be created during pipeline construction and span a wide variety of responsibilities, skill levels and trade specializations.
The jobs will be hired mainly through the contractors responsible for building the pipeline and facilities.