Morneau's announcement comes two days before a May 31 deadline for a resolution set by Kinder Morgan, the Texas-based company behind the proposed Trans Mountain pipeline expansion.
"That is how we pay for the services that we provide to our province".
Morneau said the government's purchase of the project "will ensure that we're able to safely get Canadian oil resources to world markets where we can get a fair price for them". The plan consists of purchasing the pipeline system, clearing the political obstacles, and then selling off the project to a private company again.
"Canada stands to sacrifice its global reputation, irreplaceable iconic species like the Southern resident Killer Whales, and its commitments to meet its Paris Climate targets and to reconcile with Indigenous people - all while putting enormous risk on Canadian taxpayers". "It's a government that committed to the United Nations declaration on the rights of indigenous peoples", says Mike Hudema, climate and energy campaigner at Greenpeace Canada.
RBC values the existing Trans Mountain pipeline at about $2.3 billion and you're now faced with the construction costs of the project.
"It's outrageous that Trudeau is using public funds to bail out a multinational corporation when we would create more jobs by investing in building a clean-energy economy instead", Caitlyn Vernon, campaigns director of Sierra Club BC, told the Vancouver Sun. "Not a single centimetre of new pipeline will be built with this bill to the taxpayer", Scheer said in question period.
Morneau, the finance minister, called the deal to buy the pipeline a "a commercial agreement" and insisted that the Canadian government didn't intend to remain owner of the facility. The line is a valuable asset. The federal government does not have a "target date" for its potential resale, Morneau added.
"This changes nothing, in fact, we're going to have to work even harder to continue relaying that message to Justin Trudeau and his government", he told the NOW.
Steve Kean, chairman and chief executive of Kinder Morgan Canada Ltd., said the deal represents the best opportunity to complete the expansion project. "This has been the case with every oil and coal transport proposal we've taken on".
The federal government insists the project falls under its jurisdiction. The project has always been in the national interest. CEPA is concerned about the implications of the government's financial intervention for future transmission pipeline projects.
It takes a third of a barrel of imported light oil to move one barrel of bitumen through a pipeline.
No legislative action is planned at this time, Carr said - noting no legislation is needed to move forward with the proposed commercial transaction.
The company also faced opposition from environmentalists and aboriginal groups who anxious about the pipeline spilling its tar-like heavy oil.
"Now, Canadians must ask themselves if we have succumbed to mob rule in our country over common sense and the rule of law".