Canada's Government Buys Controversial Oil Pipeline, To Ensure It Gets Expanded

$4.5B Trans Mountain plan won't mean Ottawa in pipeline business, says Morneau

$4.5B Trans Mountain plan won't mean Ottawa in pipeline business, says Morneau

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 Government of Canada made a major purchase today, shelling out $4.5 billion to buy the Trans Mountain pipeline from Kinder Morgan.

Kinder Morgan will proceed on twinning the pipeline while the sale is being finalized.

While Prime Minister Justin Trudeau and Alberta Premier Rachel Notley have been adamant that the project is good for the entire country, B.C. Premier Joe Horgan and indigenous groups in B.C. have been opposed to the project for months. 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.

In 2016, the Federal Court of Appeal overturned approval of the Northern Gateway pipeline project, but it was Ottawa that ultimately rejected the project.

What's more, a poll in April found that a growing number and a majority of British Columbians actually support the pipeline project.

Prior to Tuesday's announcement, the Council of Canadians Victoria chapter announced it would be holding a protest on Thursday, May 31, against the pipeline expansion. But $4.5 billion won't cover the future construction costs.

Kinder Morgan Canada, the unit that raised C$1.75 billion (US$1.3 billion) for the project in an initial public offering a year ago, declined to comment on the speculation.

If completed, Trans Mountain would "triple the amount of dirty tar sands being shipped from Alberta to the coast of British Columbia", OCI's Andy Rowell noted in a blog post last week.

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Finance Minister Bill Morneau unveiled the government's long-awaited, big-budget strategy on Tuesday to save the plan to expand the oilsands pipeline.

He added Ottawa shouldn't have to nationalize the project just to get it built.

Cal Salem with Squamish First Nation told the crowd his people do not what this pipeline, while calling Justin Trudeau a liar.

Morneau criticized the New Democratic Party (NDP) government in British Columbia for creating "political uncertainty" and making it hard for Kinder Morgan to proceed with the project.

According to the Pipeline Safety Act, $1 billion in financial assurances for the existing pipeline was in place based on a $500-million parental guarantee from Kinder Morgan. "We will not stop until the job is done", Notley said.

The overwhelming majority of Canada's oil exports are sold to American refiners at a discount to worldwide benchmarks, reducing fuel prices for American consumers and income for Canadian producers.

Although there isn't a motion on the table at the convention in favour of Trans Mountain, Houston said they'll look at what other advocacy options they have.

Longtime pipeline opponent and Burnaby MP Kennedy Stewart - who is running for mayor of Vancouver as an independent - invoked the late NDP leader Jack Layton in his speech, saying he would fight the pipeline till the very end.

Environmental concern has been running high in Canada and the Untied States, with opposition focusing particularly on new pipeline projects.

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