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Kinder Morgan Inc. is taking a look at selling a 50 per cent stake or less in the Trans Mountain Pipeline Expansion Project (TMX).

It plans to maintain control of the project that would add approximately 980 kilometres of new pipeline and reactivate 193 km of existing pipeline, and is also considering an IPO of a portion of TMX.

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Michael Blum, an analyst with Wells Fargo in New York, noted the next milestone for TMX’s construction, is receiving approval from the British Columbia government in January.

He highlighted Kinder Morgan’s recent guidance, where management assumed a sale of half of TMX. That would give the company 50 per cent of capex already spent, and 50 per cent of future capex.

“No additional premium has been assumed in guidance, but management noted the possibility of a buy-in premium as companies compete for a stake in the project,” Blum told clients.

The analyst also noted that Kinder Morgan is leaning towards partnering with a Canadian company for TMX.

The project has met opposition from environmentalists in B.C., who’ve threatened to push for a provincial referendum, lawsuits, and various forms of civil disobedience.

Meanwhile, oil producers in Alberta who plan to use the pipeline system, are awaiting a updated cost estimate.

Canadian Prime Minister Justin Trudeau gave TMX the go-ahead last week, and B.C. Premier Christy Clark followed soon after, as political leaders try to solve the country’s oil pipeline gridlock problem that exacerbated the pain caused by weak crude prices.