Canada's Trans Mountain Pipeline Eyes Debt Deal Before Potential Sale

(Reuters) — Oil pipeline operator Trans Mountain plans to borrow in the bond market to refinance some of its outstanding debt before the Canadian government eventually sells it, Bloomberg News reported on Monday, citing people familiar with the matter.

The company said it had C$25.3 billion ($18.4 billion) debt as of March 31, per the report.

The pipeline's expansion project, which has so far cost C$34 billion ($24.72 billion), nearly triples its capacity to ship oil from Alberta to Canada's Pacific coast to 890,000 barrels per day.

The pipeline, which was purchased by the Canadian government in 2018 to ensure it got constructed, began commercial operations on May 1, after years of regulatory and cost-related delays.

Earlier this year, the country was amending regulations on how it manages the state-owned pipeline to facilitate its sale to Indigenous groups.

($1 = 1.3752 Canadian dollars)

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