Horgan, Weaver and Notley respond to federal government's Trans Mountain pipeline purchase

Share

The Government of Canada has reached an agreement with Kinder Morgan to buy the Trans Mountain Expansion Project and related pipeline and terminal assets for US$3.5 billion (C$4.5 billion), as the federal government stepped in to save the project after British Columbia's fierce opposition to the project was threatening to derail it.

He argued Trudeau is "gambling billions of Canadian taxpayer dollars on an oil project that will never be built - a project that Kinder Morgan itself has indicated is "untenable" and that faces more than a dozen lawsuits, crumbling economics, and a growing resistance movement that is spreading around the world".

The federal Liberal government has agreed to buy the troubled Trans Mountain expansion project from Kinder Morgan to ensure the controversial expansion of an Alberta-to-B.C. crude oil pipeline gets built.

Horgan said his province will continue to seek a legal remedy to stop the expansion.

Kinder Morgan Canada Ltd. listed on the Toronto Stock Exchange on May 30 past year, luring investors with the promise of building the massive Trans Mountain expansion project.

"Why are we investing in a pipeline when global demand for heavy oil will be diminishing?" asks Allan.

Still, Darling said he plans to follow up with Energy East proponents to see if it's something they can move on.

Kinder Morgan Canada Ltd. CEO Steve Kean said the deal is "a great day for Canada" and why wouldn't he?

He says Kinder Morgan will proceed with its plan to twin the pipeline this summer while the sale is completed.

The deal for the bulk of the Canadian subsidiary of Texas-based Kinder Morgan Sale proceeds are about $12 per share after capital gains taxes, he said.

The Alberta government also has pledged a contingency fund of up to about $1.5 billion to provide emergency funds to the project if unforeseen circumstances arise.

The pipeline connects oil sands facilities near Edmonton, Alberta, to tanks in Burnaby, near Vancouver on Canada's west coast.

Meanwhile, Green Party Leader Elizabeth May pleaded guilty to criminal contempt after she protested at the Kinder Morgan construction site, violating a B.C. court injunction.

The only studies that say the Trans Mountain pipeline will make money for the Canadian economy are reports paid for by Kinder Morgan.

The pipeline's expansion had been facing a May 31 deadline - imposed by Kinder Morgan - to solve the impasse between Alberta and British Columbia hampering the project's progress.

"It's really quite a turnup for the books for the Canadian government to buy itself a pipeline", he said.

"It's very possible we might not have to spend a cent of it", Notley said of the financial backing, which would be payable only when oil begins to flow from the twinned pipeline.

Notley added: "This is the most certainty this project has ever had".

There are parties interested in the pipeline, including Indigenous communities and pension funds, Morneau said, but his officials acknowledged it may be hard to find a buyer amid lingering uncertainty until after the pipeline is actually built.

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.

Greenpeace Canada's Mike Hudema tweeted "Good-bye climate and Indigenous rights commitments Canada and hello Massive losses".

Bad enough that people like hysterical, anti-pipeline protesters, as Robert Bryce explains in his book Power Hungry, refuse to accept the inescapable reality that, "We use hydrocarbons - coal, oil and natural gas - not because we like them, but because they produce lots of heat energy from small spaces, at prices we can afford in the quantities that we demand".

Share