Canadian government to buy pipeline project from Kinder Morgan for $4.5bn

Canada purchases Trans Mountain pipeline project for $4.5B

Moe wants to know how the federal government, in partnership with Alberta, owning the project will change the B.C. government's continued opposition to the project. "This does not change the course British Columbia's government has been on since we were sworn in in July of 2017".

Bill Morneau, minister of finance, alongside Jim Carr, minister of natural resources, announced this morning that the federal government has purchased the Trans Mountain pipeline system and expansion project (TMEP) for $4.5 billion. Citing investor uncertainty, it also said it would give up on the expansion plan if British Columbia did not stop its attempts to block it by this Thursday.

Prime Minister Justin Trudeau's government has just signed up to captain the Titanic of tar sands oil pipelines, putting it on a collision course with its commitments to Indigenous rights and the Paris climate agreement.

"Tens of thousands of B.C.jobs depend on pristine coastal and inland waters", said Horgan. "Given it will be stuck in court for a while, I don't think we will see this pipe built anytime soon".

"Our government is determined to defend British Columbia's interests within the rule of law and in the courts", said Horgan. "This is a complete failure by this premier", he said.

May, along with New Democrat MP Kennedy Stewart, was arrested March 23 at a Kinder Morgan terminal on Burnaby Mountain protesting the company's plan to twin the Trans Mountain pipeline between Edmonton and Burnaby.

Morneau went out of his way Tuesday to describe how the pipeline and expansion project had value for Canadians and would provide a boost to the Canadian economy.

The company had ceased all non-essential spending on the Trans Mountain expansion in April, vowing to cancel it unless it received assurances it can proceed without delays and without undue risk to shareholders by a deadline of this Thursday. Opponents of the project include several environmental groups and the Union of BC Indian Chiefs.

The transaction on which the federal government and Kinder Morgan agreed upon on Tuesday is expected to close in August 2018.

"John Horgan picked a fight with Alberta and provoked a constitutional crisis with Ottawa over this project and this is now the embarrassing result", Wilkinson said.

Other analysts believe the project, if built, would be a marketable asset.

He argues the NDP government hasn't thought this issue through.

"We should be investing in growth industries that are clearly where the world is heading", he said. A lack of capacity in pipelines or in rail cars to ship oil produced in Alberta is also hurting Canada's energy sector.

One institutional investor in NY, who spoke on condition of anonymity, said that if the pipeline is built he expects the federal government to make $2 billion in profit when it eventually sells the asset.

Ottawa's grand bargain is still alive but could yet unravel in the face of hostility from the provincial government in B.C. "This really is a sad day for Canada, and Premier Horgan is squarely to blame", ICBA President Chris Gardner said.

Indigenous leaders and environmentalists have pledged to do whatever necessary to thwart the pipeline including chaining themselves to construction equipment.

"This is the moment in history where Justin Trudeau has revealed that he never cared about Indigenous rights or reconciliation", said Will George, Tsleil-Waututh member and spokesperson for the Coast Salish Watch House.

The Watch House will continue to stand in the way of the pipeline, he said. Any money put toward construction would be converted into an equity stake in the federal project, she said.

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