Canada to buy Kinder Morgan pipeline project assets


The purchase, for 4.5 billion Canadian dollars, ensures that the Trans Mountain pipeline, which carries oil from Alberta to a port in a suburb of Vancouver, British Columbia, will begin a planned expansion this summer.

Berman said the Liberal government "made a very big mistake" by backing Kinder Morgan's project and alienating voters to create "a flawless storm" that would prompt people to take action. The federal government's pipeline acquisition will make opposition to the project more hard in British Columbia, further straining the relationship between Ottawa and Victoria, not to mention between Victoria and Edmonton.

"Today, we've taken action to create & protect jobs in Alberta and BC, and restart construction on the TMX pipeline expansion, a vital project in the national interest", Trudeau said in a tweet.

Finance Minister Bill Morneau has hinted there'll be additional costs to the Trans Mountain project, but says they'll be defrayed by revenue generated by the pipeline itself.

Export Development Canada will finance the purchase, which includes the pipeline, pumping stations and rights of way along the route between Edmonton and Vancouver, as well as the marine terminal in Burnaby, where oil is loaded onto tankers for export.

On Monday, Prime Minister Justin Trudeau reiterated that his government is "going to get this pipeline built", but offered no news on the matter days before Kinder Morgan's deadline. They said more oil-by-rail shipments would be necessary.

The extraordinary move by the Canadian government to push ahead with the crucial pipeline has drawn strong reactions from across the country.

But besides the parliamentary outrage, the decision to pay Kinder Morgan US$3.46 billion (C$4.5 billion) has now caused Saint John's leaders to question this special treatment of Trans Mountain. And now they're facing, as my mother used to say, "If you lay down a bed of nails, you may have lie in it sometime.' The reality is the pipeline became more than a pipeline issue".

"We continue to engage in financial discussions on the way we are going to do that", he said.

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The mayor of Canadian town Saint John has asked the federal government to dust off the Energy East pipeline project, which TransCanada quit a year ago.

Will George, a spokesman for the Tsleil-Waututh First Nation, which has led resistance to the project, said the federal takeover guarantees a broader coalition of opposition in the coming months.

Frustrated with opposition to the twinning of the pipeline from Alberta to the coast, and nervous about Kinder Morgan withdrawing from the project, Prime Minister Justin Trudeau's government has agreed to buy the pipeline and other assets from the Texas-based company for $4.5 billion.

Morneau says the federal government does not plan to be a long-term owner and is in negotiations with interested investors, including Indigenous communities, pension funds and the Alberta government.

The federal government insists the project falls under its jurisdiction.

The provincial government will continue to "defend British Columbia's interests within the rule of law", he said.

This is why attacks like this from the Conservative party are so important moving forward.

Currently, 99 percent of Canada's oil is sold to the United States at a discount, and access to the Pacific coast is seen as key to diversifying the world's sixth-largest oil producer's energy exports. He promised that this project could not go through unless it was done through a vigorous review, which he broke'.