Kinder Morgan shares up

​Senate passes bill calling for Ottawa to back Trans Mountain | Regulatory

"We are going to get that pipeline built", Trudeau said Tuesday morning as he headed into a meeting with his cabinet.

"This allows us to get rid of the political risk around (the pipeline) because we (are imposing) federal jurisdiction over the project", he said. "We have met the deadline", she tweeted.

The federal move has the full backing of Premier Rachel Notley, with Alberta also committing up to $2 billion to cover costs that arise from "unforeseen circumstances".

For Horgan, there was a single silver lining of Tuesday's announcement - that he can now pick up the phone and call the owner of the pipeline for "more candid discussions" than he was ever able to have with Kinder Morgan.

The news comes as the project has been pegged back by numerous regulatory delays that could see construction stretch beyond the latter half of 2020, costing Kinder Morgan vast sums of money that has resulted in the firm threatening to abandon the project.

Morneau said 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, which will provide funding for any unexpected costs that arise during construction.

Facing stiff environmental opposition from British Columbia's provincial government and activists, Houston-based Kinder Morgan earlier halted essential spending on the project and said it would cancel it altogether if the national and provincial governments could not guarantee it. The questions those court actions seek to answer - from First Nations title and consultation issues, to B.C.'s own case on the environmental review process and ability to protect its coast - are still lingering over the project, May added.

For the Alberta government, the expansion of the Trans Mountain line to Vancouver is crucial to open up new markets for Alberta's oilsands crude and achieve better pricing.

Horgan said the federal government's decision to take over the project puts Ottawa in charge of managing every aspect of the pipeline, including its risks.

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, B.C., where oil is loaded onto tankers for export.

Federal Finance Minister Bill Morneau said that in return for Ottawa's commitment, Kinder Morgan will go ahead with its original plan to twin the pipeline this summer while the sale is finalized, which likely won't happen until August.

The pipeline expansion would triple the capacity of an existing line to ship oil extracted from the oil sands in Alberta across the snow-capped peaks of the Canadian Rockies. "We will not stop until the job is done", Notley said.

Morneau said more investment will be needed to complete the construction of the pipeline expansion, and that in the long term the project "has commercial value" and should be in the private sector.

Calling a controversial pipeline expansion "a vital project in the national interest", Canadian Prime Minister Justin Trudeau says his government is buying the Trans Mountain pipeline to ensure that the expansion is built, despite protests from environmentalists and other groups. Two months later, the B.C. government, then led by premier Christy Clark's Liberals, gave approval to the project.

The crisis has passed for now, Notley said.

Related:

Comments

Latest news

Rockets miss 27 consecutive 3-pointers, eliminated by Warriors
Considering he is averaging 34 points, 9.2 rebounds and 8.8 assists per game these playoffs, that at least feels possible. On Monday morning, Warriors coach Steve Kerr said Iguodala was having a hard time being sidelined deep into the playoffs.

Twitter Honors Danica Patrick After Final Race of Historic Career
She got a one-off for the Daytona 500 with Premium Motorsports and was caught in a multi-car crash just past the halfway point. The 2018 Indianapolis 500 was Patrick's final race before retirement and her first Indy 500 since 2011.

Ireland votes to liberalize abortion regime in landslide
Younger voters showed more support for overturning the amendment than older voters, according to RTÉ exit poll projections. Conceding defeat, the "No" campaign said: "What Irish voters did yesterday is a tragedy of historic proportions ".

Irish turn attention to parliament as abortion ban voted out
Several people refuse to talk about their vote at all - who are you to ask me about it? - heard in the click of the door closing. According to the United Kingdom's National Health Service, 10 Irish women a day cross the Irish Sea to receive an abortion .

Other news