Canada to buy Kinder Morgan oil pipeline in bid to save project

Canada to buy Kinder Morgan oil pipeline in bid to save project

Troy Powers
May 31, 2018

Ahead of his speech, a crowd of pro-pipeline protestors yelled "Build that Pipe!" while wearing "I Love Oil Sands" t-shirts, with Morneau and Alberta Premier Rachel Notley greeting them and signing a "Pipelines to Tidewater" banner.

The federal finance minister said the government does not plan to be the long-term owner of the pipeline and expects the project to be transferred to private sector investors "at an appropriate time".

Conservative Leader Andrew Scheer said Prime Minister Justin Trudeau failed to get the job done and had to resort to spending taxpayers' money.

"Trudeau is gambling billions of Canadian taxpayer dollars on an oil project that will never be built", Mike Hudema, a climate and energy Campaigner at Greenpeace Canada, declared in a statement on Tuesday.

A majority of Canadians support the pipeline, according to recent polls, but they are reluctant to see tax dollars used to support it.

Gladu said it's particularly frustrating from Sarnia-Lambton's perspective after Ottawa denied funding for key projects.

A finance ministry spokesperson later said in an email to Black Press Media that the purchase would be financed by a loan and that the $4.5 billion would be recorded as an asset, not a debt, and not add to Ottawa's current $18.1-billion deficit.

"I said to the Prime Minister that ownership of the project doesn't change my concerns", said B.C. Premier John Horgan.

Political observers said it's not clear how the pipeline's resurrection will effect next spring's election.

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The main aim of this culling project is to protect the New Zealand economy, with milk being the countries single largest export. The cows will be killed in phases and the first phase will kill around 26,000 cows, process for which is already underway.

The company's announcement ramped up the fight over the contentious project, which has pit the federal government and the landlocked province of Alberta against BC.

The Trans Mountain project is created to increase capacity of the 65-year-old pipeline from Edmonton, Alberta, to Burnaby, B.C., from 300,000 to 890,000 barrels per day.

Sims anxious Canadians could be on the hook for more than just building the pipeline. The province said it had pledged up to $2 billion for the project if needed, but said it may not need to use any of those funds.

For those opposed to the pipeline twinning, including Indigenous leaders and environmentalists, the bailout probably came as a "big surprise, if not a shock", he said.

Canada will spend $3.4 billion to acquire the existing pipeline and the rights to the expansion project, subject to Kinder Morgan shareholders' approval.

Under the proposed federal plan, the Trans Mountain pipeline will be placed under the stewardship of a new Crown corporation and Ottawa will divest itself of the project at a later date. Pipeline opponents are also calling out Trudeau for abandoning federal commitments to take action on climate change and respect the rights of indigenous nations.

"We believe that this signals a strong and continued conviction that we need to recognize the environment and the economy goes hand in hand", he told reporters.

But the nationalization of a project with massive profit potential is an admission that Canada's regulatory system is badly - if not entirely - broken. The three groups, as well as Burnaby Residents Opposing Kinder Morgan Expansion, have been regularly demonstrating in different ways at Trans Mountain's two Burnaby facilities over the last few months. The federal government has repeatedly said the project is in the national interest.