CALGARY—The suspension of work on Kinder Morgan Canada Ltd.’s Trans Mountain pipeline expansion project will have a “chilling” effect on overall investment in Canada, industry observers say.
The company’s April 8 decision to impose a May 31 deadline for government reassurance that it can safely spend the bulk of the project’s $7.4-billion construction cost comes after two other projects were ended last year—TransCanada Corp.’s proposed Energy East pipeline and Enbridge Inc.’s previously approved Northern Gateway.
