Kinder Morgan halts work on Trans Mountain pipeline

CALGARY — Kinder Morgan is suspending all non-essential activities and related spending on the Trans Mountain pipeline expansion project.

The company says its decision is based on the British Columbia government’s opposition to the project, which has been the focus of sustained protests.

Kinder Morgan says it will consult with “various stakeholders” to try and reach an agreement by May 31 that might allow the project to proceed.

The move will be seen as a blow to Prime Minister Justin Trudeau, who has insisted that the pipeline would be built, despite the angry protests and the B.C. government’s continued battle against the project in the courts.

The expansion, which would triple the amount of oil flowing from Alberta to Burnaby, B.C., was approved by the federal government in 2016.

Kinder Morgan says it will make a decision about the project’s future based on whether it can get “clarity” on its ability to do construction in B.C. and protect its shareholders.

“As KML has repeatedly stated, we will be judicious in our use of shareholder funds. In keeping with that commitment, we have determined that in the current environment, we will not put KML shareholders at risk on the remaining project spend,” Steve Kean, the company’s chair and chief executive officer, said in a statement.

“A company cannot resolve differences between governments.”