(Reuters) - Evraz Plc, Russia’s No. 2 steelmaker, signed an agreement with Kinder Morgan Inc to supply about 250,000 metric tons of pipe to the U.S. pipeline company for the expansion of the Trans Mountain pipeline.
More than 75 per cent of the pipe needed for the project will come from Evraz’s Regina, Saskatchewan plant in Canada, the pipeline operator said.
Evraz, part-owned by Chelsea soccer club owner Roman Abramovich, is a vertically integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, USA, Kazakhstan, Czech Republic, Italy and Canada.
Last week, Kinder Morgan said its Canadian unit filed for an initial public offering of restricted voting shares, to help finance its C$7.4 billion ($5.4 billion) Trans Mountain expansion project.
The expansion will nearly triple the size of the Trans Mountain pipeline and ship 890,000 barrels a day of crude from Edmonton in Alberta to Barnaby in British Columbia.
It was approved by the Canadian government last year despite opposition from environmental and aboriginal groups.
Reporting by John Benny in Bengaluru; Editing by Saumyadeb Chakrabarty