Liberal government to buy Trans Mountain pipeline for $4.5B

Share

Like Petro-Canada before it, Kinder Morgan's Trans Mountain pipeline will soon become an asset of the federal government (pending approval by Kinder Morgan shareholders), but is the $4.5 billion agreement worth the investment?

The Liberal government has claimed that purchasing the Kinder Morgan's Trans-Mountain assets was necessary so that the government can complete the estimated $7.4 billion pipeline expansion project.

The minority left-leaning New Democratic government in British Columbia, citing the risks of a major spill, opposes the project.

We are endeavouring to move positively into the next decades without further harming the Earth. In my opinion, it was also his final and fatal fall from grace.

If Canada indeed ends up buying the pipeline, it will be exclusively to ensure its capacity can be tripled, allowing Canada to find new export markets for its oil resources, Morneau said - and that ultimately, the long-term goal will be to find a private-sector buyer to take it over.

Kinder Morgan Canada halted pipeline work in April, while trying to determine if it could proceed with the project because of opposition.

Mayors and councillors, totalling about 1,100, from urban municipalities across the province voted at the 2017 AUMA convention "in favour of a resolution supporting the Trans Mountain Pipeline expansion and urging our federal government and the government of Alberta to ensure that the pipeline is built", the letter reads. "We must put in place the environment where people can come in, in a very clear, stable political environment that they're willing to invest in provinces like Newfoundland and Labrador", said Ball.

More news: Warriors reach 4th straight NBA Finals

Canadian Prime Minister Justin Trudeau says that the expansion of the Trans Mountain pipeline is "a vital project in the national interest" and that its purchase will ensure the expansion is built, despite protests from environmentalists and other groups.

Morneau stressed repeatedly the pipeline is commercially viable and profitable.

"It was such a huge investment in the fossil fuel industry, but also for the federal government to be putting that many billions of dollars into a project that the private sector is walking away from - it seems quite risky", Harrison said. Kinder Morgan makes about $200 million a year from selling space in the existing pipeline to oil companies to ship their product.

"Kinder Morgan has recently indicated that it needs to be provided with certainty that it can build the Trans Mountain Pipeline by May 31 or it is not proceeding with the project", town documents stated. "These are exceptional circumstances and should not be considered the norm", the association said.

Horgan said his concerns remain rooted in what he calls the limited scientific knowledge of how diluted bitumen behaves in water, as well as perceived gaps in prevention efforts and response plans in the event of a spill. However, this is highly controversial in the province of British Columbia. While he was pleased to see Bill C-48, the Oil Tanker Moratorium Act, pass through the House of Commons in early May, he said it took too long, and now they have to wait for the Senate to pass the bill.

Alberta Premier Rachel Notley cheered the news on Twitter.

"Our mandate from our people is to continue to defend our rights as a people and to protect our territory, not just for us but for future generations".

Share