CALGARY, Alberta (Reuters) - Environmental group Greenpeace on Thursday asked the Alberta securities regulator to halt Kinder Morgan’s initial public offering (IPO) of its Canadian business until the company disclosed climate-related risks to potential investors.
Energy infrastructure company Kinder Morgan is seeking to raise up to C$1.75 billion ($1.29 billion) in an IPO to help fund the expansion of its Trans Mountain pipeline project, which runs from Alberta’s oil sands to the British Columbia coast.
The project received approval from the Canadian government last year but is facing fierce environmental opposition from campaigners worried about high greenhouse gas emissions from the oil sands.
“Kinder Morgan’s business plan only works if the world fails to act on climate change,” said Keith Stewart of Greenpeace Canada. “They may think that’s a good bet, but they should be honest with potential investors about the risks being taken with their money.”
Greenpeace’s submission to the Alberta Securities Commission argues the IPO prospectus’ analysis of climate change risks is incomplete and uses oil demand forecasts that are too bullish.
“We received Greenpeace’s submission, and we will give it the consideration we deem appropriate,” ASC spokeswoman Alison Trollope said in an email.
Trans Mountain could face further roadblocks if final results from the B.C. provincial election, due next week, return a government opposed to the pipeline.
Reporting by Nia Williams; Editing by Andrew Hay