Kinder Morgan Inc (KMI)

[eFinanceMarkets]

$KMI Trans Mountain backer Desjardins may stop pipeline loans

Canadian lender Desjardins says it is temporarily suspending its funding of energy pipelines and may make the decision permanent in September, citing concerns about the impact such projects may have on the environment.

Desjardins has committed $145M to Kinder Morgan’s (KMI -0.6%) Trans Mountain pipeline expansion, and a permanent decision likely would mean it also would not help finance other major Canadian pipeline projects, including TransCanada’s Keystone XL (TRP -0.4%) and Energy East and Enbridge’s (ENB -0.5%) Line 3.

Such a move would follow Dutch lender ING's policy of not funding projects directly related to oil sands, and is another sign that pipelines could have a harder time getting funding as banks face increasing pressure to back away.