“I’ve talked to them and I’ve suggested that they shut their main [Trans Mountain] pipeline down,” Greg Guichon told BNN.
Greg Guichon is the Chairman of Barometer Capital Management. Barometer Capital Management owns about 500,000 shares of Kinder Morgan Canada.
And now, he’s calling for the shutdown of the Trans Mountain pipeline.
As reported by BNN, Guichon said “I’ve talked to them and I’ve suggested that they shut their main [Trans Mountain] pipeline down.”
Says Guichon, “I think the company should sue the government of B.C. for breaking the law so they can recover their costs. There is a legal liability here for the B.C. government and really [Kinder Morgan Canada] should be able to recover their costs plus interest.”
Guichon says the company “would leave value on the table,” by walking away from the project, but says walking away would be better than “months or even years” of uncertainty.
Each month the pipeline expansion is delayed, Kinder Morgan loses $75 million in revenue.
Notes Guichon, “It is pretty binary for them: either they can build it or they can’t,” Guichon said. “But the fact that we as a country are selling our oil at such a discount to world prices because we just can’t get it to market, all that potential corporate revenue and tax revenue that we are letting go every day, it is just criminal.”
Guichon’s suggestion shows the escalating pressure on both Kinder Morgan, the B.C. NDP, and the Trudeau government as the pipeline crisis continues. Investors will only put up with uncertainty for so long before they increase demands for a clear resolution, and B.C. faces the prospect of large gas price increases due to Horgan’s intransigence.
Meanwhile, Justin Trudeau’s repeated refrain that the pipeline will be built has contrasted dramatically with his weakness and lack of action, and every move towards the failure of the Trans Mountain expansion erodes Trudeau’s already-crumbling credibility.
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