Canada likely to buy Trans Mountain pipeline project

Canada to buy Kinder's Trans Mountain pipeline for $3.5 billion

Federal government will purchase Trans Mountain pipeline for $4.5B

As for me, I say this of the pipelines: Never, never, never.

The federal Liberal government is spending $4.5 billion to buy Trans Mountain and all of Kinder Morgan Canada's core assets, Finance Minister Bill Morneau said Tuesday as he unveiled the government's long-awaited, big-budget strategy to save the plan to expand the oilsands pipeline. Morneau had said Canada would cover any cost overruns caused by B.C.'s actions, but in the end, that clearly wasn't enough. "We won't stop until the job is done!" "The only (way) in our estimation that that can be done is through exerting our jurisdiction by purchasing the project".

Sims said Ottawa capitulated too easily, getting to work on a solution the moment Kinder Morgan announced its May 31 deadline to decide whether it could continue with the project.

The project will be worthwhile for the federal and Alberta governments even if it sells for less than it costs because it will improve access by oil producers to world markets, ensuring better prices that will translate into billions of dollars in corporate income taxes and oil royalties, he said.

Mayors and councillors, totalling about 1,100, from urban municipalities across the province voted at the 2017 AUMA convention "in favour of a resolution supporting the Trans Mountain Pipeline expansion and urging our federal government and the government of Alberta to ensure that the pipeline is built", the letter reads.

Earlier this month, her government passed a law giving Alberta the power to limit oil and gas exports to other regions, which could cause gasoline and jet fuel prices to spike in B.C. Existing statutes stipulate one level of government can not interfere with the work of another - a situation one official called a "conversation changer" that might convince Horgan to back down.

March 9, 2018: B.C. Supreme Court grants interim injunction aimed at preventing anti-pipeline activists from protesting construction at two terminals in Burnaby. Kinder Morgan makes about $200 million a year from selling space in the existing pipeline to oil companies to ship their product. "That does not have anything to do with building the new pipeline and the estimates on that are anywhere from $7 [billion] to $14 billion, assuming it proceeds. These are exceptional circumstances and should not be considered the norm", the association said.

None of Tuesday's news appeared to do much to dissuade Horgan, however, who insisted his court challenge would proceed.

"I knew the potential options they were facing, I just didn't know which one they would settle on", Crey said. "Maybe, because the federal government might have a. different capital return threshold than a private entity might have".

British Columbia Premier John Horgan said he's anxious about the "catastrophic consequences" should there be a spill, regardless of the owner, and will continue to fight it in court.

Prime Minister Justin Trudeau has worked himself into a bit of a mess, with news of the pending purchase drawing the ire of various environmental groups who see the deal as a betrayal of Liberal promises. However, this is highly controversial in the province of British Columbia.

Trudeau argues the project went through several approvals, including an expanded environmental approval process that did more consultation with Indigenous communities and looked at additional environmental risks, including the affect on emissions of producing more oil to flow through the pipeline. "That certainty is absolutely critical".

The Alberta government may also be called on to pony up an unspecified amount of money, Morneau said.

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