Did Ottawa pay too much for the Kinder Morgan pipeline project?

3:17pm


Image Credit CFJC Today

The pipeline has suffered delays due to opposition from indigenous communities and environmental groups.

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.

By buying the pipeline outright, the Trudeau government has gone all in on this project.

Berman said the Liberal government "made a very big mistake" by backing Kinder Morgan's project and alienating voters to create "a ideal storm" that would prompt people to take action.

The remaining 536 submitted permit applications are being reviewed. If no new buyer is reached by July 22, Kinder Morgan will present the $4.5 billion offer from Canada to its shareholders for a vote before the end of July.

For now, the Canadian government will offer federal loan guarantees to ensure construction of the expansion continues through the 2018 season as part of the deal with the company, a unit of Houston-based Kinder Morgan Inc.

The federal decision to buy the pipeline could prompt further legal challenges by Indigenous Peoples, said Prof. Because of pipeline bottlenecks and growth in output, the crude oil transported from northern Alberta has been selling at a substantial discount.

"My expectation is that the outrage is going to grow and we're not just going it see it here in British Columbia but we're going to see it nationally and internationally", she said, adding social media makes it possible for activists to connect in ways that didn't exist at the height of anti-logging protests in 1993.

Pipeline proponents are jubilant, among them Alberta Premier Rachel Notley, who said in Edmonton there is now more certainty around the project than ever before.

"To me, that raises a question about how policy decisions made now, about pipelines and other infrastructure, how they mesh with this idea that we must now start planning for a future ... which is a non-fossil fuel future", Kinley said.

VICTORIA-Premier John Horgan says he will continue the fight to protect British Columbia's coast from the consequences of an oil spill regardless of who owns the Trans Mountain pipeline.

Political experts said relations between B.C. and the federal government and neighbouring Alberta are strained over the ongoing pipeline dispute, but Trudeau's Liberals have the most to lose with the pipeline purchase.

"It's fully subscribed by shippers, it goes to tidewater.it would be a good asset and you could sell that at a good price once you've got it done", he said.

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.

"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.

Finally, Trans Mountain is a test of Ottawa's ability to see through any big resource project.

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