Kinder Morgan (NYSE:KMI) said last week that its Trans Mountain pipeline expansion project will be smaller than originally thought.
The project is now expected to cost $4.1 billion instead of $5 billion, as was originally announced in April, the pipeline company said.
Fewer shipping companies have agreed to sign long-term binding agreements to buy petroleum products from the expanded line than originally thought, the company said.
As a result, the expansion will now ship the equivalent of 750,000 barrels per day compared with 850,000.
Kinder Morgan spokesperson Lexa Hobenshield said it's not uncommon for commitments from buyers to change during the early stages of an expansion project.
The expansion will twin the existing 1,150-kilometre pipeline, which has ferried petroleum products from Alberta to B.C. for nearly 60 years.
