Kinder Morgan Canada Limited (TSX: KML) today welcomed the completion of its IPO and with that, the finalizing of the investment decision on the Trans Mountain Expansion Project.

“This is an exciting day for our customers for communities and for the many individuals who are relying on this Project to deliver jobs and economic benefits to their communities,” said Ian Anderson, President of Kinder Morgan Canada Limited. “This securing of financing for the Project demonstrates the need for and interest in the opportunity for Canada to have better access to world markets.”

The final investment decision to proceed with the Trans Mountain Expansion Project triggers a number of important next steps including the finalizing of construction contracts and the actualization of the financial, employment and safety benefits the company has committed to through more than five years of engagement and consultation.

“We have been talking about the benefits of the Project for more than five years. Today, we can begin to deliver these benefits by awarding substantial contracts, delivering thousands of middle class jobs to Canadians and by moving forward with our agreements with Aboriginal communities,” added Anderson.

The final investment decision means that investments in safety, jobs, the environment and communities will commence including:

  • Once in service, annual payments to the Province of B.C. for the B.C. Clean Communities Program for local, environmental projects
  • Mutual Benefits Agreements payments and opportunities for Aboriginal communities in B.C. and Alberta
  • Investments to Western Canada Marine Response Corporation for five new response bases, vessels and more than 100 new employees
  • Contributions for communities along the pipeline through Community Benefits Agreements for local projects

The $7.4 billion expansion project will result in direct and lasting economic benefits to Canada and communities along the pipeline corridor, including the equivalent of 15,000 jobs per year during construction. Overall, the Conference Board of Canada estimates the Project will generate $46.7 billion in government revenues and 802,000 person years of employment, the equivalent of 40,000 jobs each year, over more than 20 years.

Construction is set to begin in September 2017 and the Project is expected to be placed in-service by the end of 2019.