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Demonstrators protest against the proposed Keystone XL oil pipeline in San Francisco, February 3, 2014.
Demonstrators protest against the proposed Keystone XL oil pipeline in San Francisco, February 3, 2014.
(STEPHEN LAM/REUTERS)

Pipeline shippers face more risk than bondholders

Lengthy regulatory and political delays facing Canadian pipeline companies’ major project proposals are more of a burden on their shippers than their debt holders.

Contentious projects such as TransCanada Corp.’s Keystone XL and Enbridge Inc.’s Northern Gateway are years beyond their initial schedules, but that is not affecting the pipeliners’ credit quality, said Gavin MacFarlane, vice-president and senior analyst at Moody’s Investors Service.