It is now apparent that no amount of protests by locals will keep Kinder Morgan Inc (NYSE:KMI) away from the expansion of its pipeline in Vancouver, which is a suburb of Burnaby in Canada. The police in the region have already made several arrests in the area, according to a Reuters report. Kinder Morgan, which is on the verge of a $44 billion consolidation deal, has also updated on the pipeline project in Vancouver.
There have been widespread protests by mostly environmentalists and locals over the project to expand Kinder Morgan Inc (NYSE:KMI)’s pipeline in Vancouver. However, the company expects the expansion to boost its capacity and lead to higher revenue and profits for the shareholders. The company has already started work on the disputed sites and said that work there will go on round the clock each day. It also expects drilling at the Burnaby Mountain to last for up to 12 days, which is the regulatory requirement.
The Canadian police have arrested nearly 34 people over the protests against Kinder Morgan Inc (NYSE:KMI)’s pipeline expansion. Nonetheless, the Canadian regulators are monitoring the pipeline project and a decision on that matter is expected in 2016.
If the expansion is successful, Kinder Morgan Inc (NYSE:KMI) will be able to almost triple its current pipeline capacity. The expanded infrastructure will also enable the company to increase its tar sands crude transportation to Vancouver from Alberta and also into the Asian markets.
Merger in the works
Meanwhile, the efforts to combine the various affiliates of Kinder Morgan Inc (NYSE:KMI) into one huge business entity has begun. The company secured the approval of $44 billion to effect the mega merger, which is expected to be one of the largest in the history the U.S. merger deals. The resulting corporation is also expected to enjoy enhanced operational capacity, higher revenue and create better value for the shareholders.
The deal will combine Kinder Morgan Management LLC, El Paso Pipeline Partners LP and Kinder Morgan Energy Partners LP. Trading in the stock of these affiliates is expected to cease later this month.