Canadian government to buy Kinder Morgan's Trans Mountain pipeline

​Senate passes bill calling for Ottawa to back Trans Mountain | Regulatory

​Senate passes bill calling for Ottawa to back Trans Mountain | Regulatory

The federal government announced a deal with Houston-based Kinder Morgan Inc.to purchase the existing Trans Mountain pipeline between Alberta and British Columbia, as well as the expansion project to twin the pipeline, before markets opened Tuesday and Finance Minister Bill Morneau said Ottawa did not intend to be a long-term owner.

McMillan said if a pipeline that meets a high regulatory standard, has all the approvals, support from a majority of Canadians and the backing of the federal government can not get built, it sends a chilling signal that Canada is not open for business. "We have met the deadline", she tweeted.

Alberta will contribute up to C$2 billion toward unforeseen costs, payable once the project is complete, Premier Rachel Notley said.

"This is a major step forward for every single one of us", she said.

But Morneau said the Alberta-British Columbia feud - which led Alberta to boycott British Columbia wines and threaten to cut the neighboring provinces fuel supplies - "cannot be allowed to fester".

Until now, his government has used kid gloves to try to persuade British Columbia to abandon its opposition to the pipeline, hoping not to alienate voters in the province ahead of next year's general election.

The pipeline purchase would also transfer to the federal government all of the people involved in building the expansion, including project managers and construction workers.

Pipelines that cross provincial borders are federally regulated, but B.C. argues in a court challenge that it has the right to restrict diluted bitumen shipments within its boundaries.

"The question we're putting to the court has nothing to do with a federal Crown corporation", said Horgan.

Pressed about why the federal government's $4.5-billion price tag was so much lower than Kinder Morgan's stated $7.4-billion project value, Morneau said Ottawa was purchasing all the relevant assets - but he studiously avoided saying whether construction would increase costs.

"And, it will reassure investors that Canada is a country that respects the rule of law and gets big, important things done", he added.

Messi wants to play for Newell's Old Boys
The five-time Ballon d'Or victor added: "In a World Cup, logic is nearly never given". They are part of Group D, which also includes Croatia , Iceland and Nigeria.

Trudeau has publicly vowed to build the pipeline with or without Kinder, and offered to indemnify the company against losses related to B.C.'s delays.

Notley said there's a difference of opinion among Indigenous communities, and many support the pipeline.

Trudeau said Canada loses $15 billion a year because oil can not be exported anywhere but the United States, adding that the pipeline expansion opens up the option of exporting to Asian markets.

Canada's government stepped in Tuesday to take over a controversial pipeline expansion project to ensure that it gets built in the face of stiff opposition from environmental activists and a regional government.

"Our government believes that the commercial agreement we have reached with Kinder Morgan is the best way to protect thousands of good, well-paying jobs while delivering a solid return on investment for Canadians".

Construction has begun on some of the modifications for the company's marine terminal in Burnaby, where Trans Mountain's oil is loaded onto tankers for export.

Tim McMillan, head of the Canadian Association of Petroleum Producers (CAPP), said the situation should never have come to this. "The government was under tremendous political pressure to get this deal done".

He said the failure of the proposed Northern Gateway pipeline to the West Coast and Energy East pipeline project to the East Coast means Canada remains highly dependent on the USA market for exports. "I think I would walk away", he said.

Notley said it's unlikely her government would enact landmark legislation passed earlier this month to turn off the taps to B.C.

Canada needs infrastructure like that created to triple Trans Mountain's capacity to move crude oil and refined products from the Alberta oilsands and Edmonton refining complex to the West Coast, said Chris Bloomer, CEO of the Canadian Energy Pipeline Association.

The shares likely fell because investors were disappointed that they would no longer be eligible to share in the financial upside of the expansion project, said analyst Robert Fitzmartyn of GMP FirstEnergy Capital.

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