Kinder Morgan Inc (KMI)

[eFinanceMarkets]

Kinder Morgan's Trans Mountain expansion at risk following B.C. political deal

Kinder Morgan (KMI -3%) plunges in early trading as plans to expand its Trans Mountain crude oil pipeline from Alberta to the Pacific coast are placed at substantial risk following the Green Party's deal with the New Democrats to govern Canada’s British Columbia.

The deal brings together two parties that both oppose KMI's C$7.4B project and forces Liberal premier Christy Clark, who had favored Trans Mountain as well as liquefied natural gas projects, out of office.

The news is weighing on the Kinder Morgan Canada IPO, which opened 7% lower in its trading debut.
Any delay in the Trans Mountain expansion would be a negative for KMI but might provide a boost for rival Enbridge's (ENB -0.4%) mainline system, according to Canaccord analyst David Galison.