Canada purchases Trans Mountain pipeline project for $4.5B

Canada purchases Trans Mountain pipeline project for $4.5B

In addition to the initial costs of paying to nationalize a massive energy enterprise, Canada's CBC reports that the government could be obliged to spend billions more to finish the expansion.

As part of the deal, the government will fund the resumption of the project's planning and construction by guaranteeing its expenditures until the transaction closes.

Green Party leader Elizabeth May has pleaded guilty to a criminal contempt of court charge for violating a court-imposed protest-free zone at a Kinder Morgan work sit in Burnaby in March.

Kinder Morgan, the company behind the pipeline, suspended non-essential spending on the project in April.

That includes an integrated network of crude tank storage and rail terminals in Alberta, the Vancouver Wharves Terminal and the Cochlin Pipeline. It's actually better for Kinder Morgan than it is for Canada.

"It must be built and it will be built", Finance Minister Bill Morneau.

The options were presented during an early-morning cabinet meeting before ministers made a call on how to proceed.

The Alberta government responded with a short-lived ban on the import of B.C. wines, and the passing of Bill 12, legislation that would allow the Alberta government to "turn off the taps" for oil imports to B.C.

"This is a good day for Kinder Morgan shareholders", said Paul Bloom, president of Bloom Investment Counsel Inc.in Toronto, which owns about 300,000 shares of Kinder Morgan Canada.

To help attract a future buyer for the pipeline, Morneau said, the government plans to "extend the federal indemnity to protect any new owner from costs associated with politically motivated delays".

"For Indigenous groups, we'll make sure that existing profit-sharing or other agreements established with Kinder Morgan remain in effect". "Nothing's changed with the obstacles or the problems with this project except that we're now not dealing with a Texas corporation".

The deal brings some certainty to an expansion project that has been on the rocks since B.C. went to court in hopes of blocking it, fearing the impact of a spill of diluted bitumen, the raw output from Alberta's oilsands.

But he added in a statement that the association is "deeply concerned" that the government felt it had to purchase the project "to assert federal jurisdiction" and allow it to be built.

The government was immediately slammed from all sides for its stunning move.

"The majority of Canadians support this project".

"It's the kind of epic disaster of the last century I couldn't imagine a modern government doing, but that's exactly what we are doing", May said.

Numerous indigenous groups also oppose the project, though a number of First Nations have signed on to the expansion project.

The purchase marks a stunning development for Prime Minister Justin Trudeau's government - effectively nationalizing the country's highest-profile infrastructure project until an operator can be found.

Canada approved the project in November 2016, following an expanded environmental review process that included additional consultations with Indigenous communities and assessing the amount of additional emissions likely to result from additional production.

Horgan also spoke to the question of whether or not the pipeline issue is a personal one between him and Prime Minister Justin Trudeau, saying that has never been the case.

Canada loses $15 billion every year on the sale of oil because the USA remains its only export customer, resulting in a lower price, Trudeau argues. "Investing in this pipeline is like investing in the horse and buggy industry at the advent of the auto".

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