Calgary

75% of steel for Trans Mountain Pipeline expansion will come from Regina plant

Kinder Morgan says it has an agreement to purchase about 250,000 tonnes of pipe, equivalent to 800 kilometres of pipeline, from EVRAZ North America.

The deal is contingent on Kinder Morgan's final decision on the $7.4B project

A ship receives its load of oil from the Kinder Morgan Trans Mountain Expansion Project's Westeridge loading dock in Burnaby, British Columbia. The company will source 75 per cent of the steel for the project from a plant in Regina. (Jonathan Hayward/Canadian Press)

Kinder Morgan says it plans to buy more than 75 per cent of the pipe it needs for its Trans Mountain Pipeline expansion from a steelmaking factory in Regina.

It says it has an agreement to purchase about 250,000 tonnes of pipe, equivalent to 800 kilometres of pipeline, from EVRAZ North America.

In a joint news release, both companies say material for the pipe will be sourced from EVRAZ's recycled metal operations in Alberta, Saskatchewan, Manitoba and Ontario.

The deal is contingent upon Kinder Morgan's final investment decision on its $7.4-billion project to triple capacity of its 1,150-km Trans Mountain oil conduit from the Edmonton area to Burnaby, B.C.

Financing and conditions

NDP Leader John Horgan, a candidate in next week's B.C. election, opposes the project while Liberal Leader Christy Clark backs the development.

Kinder Morgan says it must finalize financing before proceeding, with construction expected to begin this fall and completion in late 2019.

It filed a prospectus for an initial public offering of restricted voting shares last week but has also said it is seeking partners to help pay for the line.

The project received federal approval in November but is subject to 157 conditions from the National Energy Board and 37 conditions attached to B.C.'s environmental certificate.

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