Canada to buy major pipeline to ensure it gets built

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

Alberta Premier Rachel Notley calls the federal government to spend $4.5 billion to buy the Trans Mountain pipeline and all of Kinder Morgan Canada's core assets a major step forward for Albertans and all Canadians.

In return, Kinder Morgan will go ahead with its original plan to twin the pipeline this summer while the sale is finalized, which likely won't happen until August, Morneau told a news conference in Ottawa.

Horgan said he's anxious about the "catastrophic consequences" should there be a spill, regardless of the owner, and will continue to fight it in court.

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.

Notley said Tuesday that the federal decision would "unlock" investment in the oilpatch.

In an emailed statement late Monday, the Calgary-based company said it didn't intend to issue updates "unless and until these discussions have concluded or we've reached an agreement that satisfies our two objectives: clarity on the path forward, particularly with respect to the ability to construct through British Columbia, and ensuring adequate protection of our KML shareholders".

"Canadian equities have been beat down relative to their US peers and certainty around takeaway capacity will be helpful in getting fair value for Canadian crude oil as well as Canadian companies", Forrest said.

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.

Morneau said the federal government does not plan to be a long-term owner and is in negotiations with interested investors, including Indigenous communities, pension funds and the Alberta government, which will provide funding for any unexpected costs that arise during construction. The Canadian government plans to sell the project - the existing line and its expansion - as soon as is reasonable once it's guaranteed that it will be built, the person said.

"One who not only respects the rule of law, but who understands the challenges you are up against and will work with you to find solutions that work for everyone".

A majority of Canadians support the pipeline, according to recent polls, but they are reluctant to see tax dollars used to backstop it. "We have met the deadline", she tweeted.

"Our Canadian employees and contractors have worked very hard to advance the project to this critical stage, and they will now resume work in executing this important Canadian project", Kean said in a release. Canada has the world's third largest oil reserves but 99 percent of its exports now go to refiners in the US, where limits on pipeline and refinery capacity mean Canadian oil sells at a discount.

In British Columbia, Premier John Horgan said, "Tens of thousands of B.C.jobs depend on pristine coastal and inland waters".

Steve Kean, chairman and chief executive of Kinder Morgan Canada Ltd., said the deal represents the best opportunity to complete the expansion project.

Provinces have jurisdiction over the environment, but the Constitution gives Canada the authority over interprovincial transportation, including pipelines. Alberta threatened to halt crude and fuel shipments to British Columbia, where consumers already pay high gasoline prices, and briefly halted imports of the coastal province's wines.

"We maintain our previous concern that the federal Liberal government will likely be highly reluctant to exercise force approaching the window of the next election cycle, expected next fall", they wrote.

None of Tuesday's news appeared to do much to dissuade Horgan, however, who insisted his court challenge would proceed.

The purchase marks a stunning development for Prime Minister Justin Trudeau's government - effectively nationalizing the country's highest-profile infrastructure project until an operator can be found.

Canada loses $15 billion every year on the sale of oil because the USA remains its only export customer, resulting in a lower price, Trudeau argues.

Related news:

Hot News

isis-killer-beheading-video-story-top Lionel Messi’s hat-trick helps Argentina to 4-0 win over Haiti
May 31, 2018 - 23:18
The VAR system will be rolled out for the first time at a World Cup at the June 14 to July 15 tournament in Russian Federation . Argentina play Iceland in Moscow in their first match of the World Cup on June 16.

isis-killer-beheading-video-story-top Diplomacy heats up ahead of potential North Korea summit
May 31, 2018 - 23:11
And on a third track was a White House logistical group sent to Singapore on Sunday to prepare in case the summit takes place. Kim Yong Chol, the highest-level North Korean official to travel to the US since 2000, was flying to NY on Wednesday.

isis-killer-beheading-video-story-top Oil prices mixed but expected output increase a drag
May 31, 2018 - 22:07
Novak did not say whether OPEC and Russian Federation would decide to boost output by 1 million bpd at their June meeting. Venezuela has seen a reduction in output of 579,000 bpd overshooting its target production cut of only 95,000 bpd.

isis-killer-beheading-video-story-top Halsey Lays Into Ivanka Trump for New Photo With Her Son
May 30, 2018 - 21:59
Then there are those horrifying reports of children being forcibly separated from their parents at the border. The reality is more complicated, and the blame can not be placed squarely on Democrats.

isis-killer-beheading-video-story-top New Signing Fabinho Reveals How Liverpool Forward Convinced Him to Join Reds
May 30, 2018 - 21:48
As the deepest midfielder in their 4-3-3, is the simple answer. "He is tactically very strong and football smart", Klopp added. He has called on Lyon's French attacking midfielder Nabil Fekir , who has been linked to Liverpool , to join him at Anfield.

isis-killer-beheading-video-story-top 'She is Going to Win!': Trump Stumps For Pro-Life Senate Candidate
May 30, 2018 - 21:40
Corker, who has publicly criticized the President, announced previous year he would not seek re-election. This comes as GOP Senate hopeful candidate Marsha Blackburn is set to face off in the August primaries.

isis-killer-beheading-video-story-top Norman Reedus Signs Huge Walking Dead Contract
May 30, 2018 - 21:00
AMC has not commented whether or not season 9 will be the final season with the news of Lincoln and Cohen's possible departure. However, it has now been reported that Lincoln will leave the show after the next season, which premieres later this year.

isis-killer-beheading-video-story-top Valerie Jarrett on Roseanne Barr's racist insult: 'Tone starts at the top'
May 30, 2018 - 19:34
It's unclear what "statements" Trump is referencing in the tweet , but it likely relates to ABC News' coverage of his presidency. She zig-zagged between apologizing for her foul Twitter behavior and retweeting memes that made her apology sound insincere.

isis-killer-beheading-video-story-top Father of child in 'Spiderman' rescue was playing Pokemon Go
May 29, 2018 - 21:31
She also said, "He explained to me that he had arrived from Mali a few months ago dreaming of building his life here". "I ran. Mayor of Paris , Anne Hidalgo praised Gassama on Twitter for his "act of bravery" and phoned him personally for his deed.

isis-killer-beheading-video-story-top Reboot routers to stop malware attack
May 29, 2018 - 21:06
Most devices in homes and businesses come equipped with default credentials which are easily stolen by hackers . Rebooting the routers should temporarily disrupt the malware and help identify infected devices.

isis-killer-beheading-video-story-top LeBron on up-and-down road back to NBA Finals: 'It's been Cedar Point'
May 29, 2018 - 19:39
Steph Curry , who finished with 27 points, went 7-of-15 from behind the arc himself - matching the entire Rockets team total. James Harden led the Rockets with 32 points but made just 12 of 29 shots from the field. "The second half was unbelievable".

isis-killer-beheading-video-story-top Man Utd target quick Fred deal as he visits England next week
May 29, 2018 - 16:23
But I believe I have a versatility on the pitch and I'm a multi-skilled player, being able to play in both midfield positions. With Michael Carrick retiring and Marouane Fellaini leaving, the arrival of Fred signals the start of a new era for United.

isis-killer-beheading-video-story-top U.S. official arrives in Singapore to begin logistics prep for NK summit
May 29, 2018 - 11:45
Earlier this month, the president scrapped a meeting with Kim because of a harsh statement made by North Korea. Yonhap said Kim Yong Chol's name was on the passenger list for a flight Wednesday from Beijing to NY .

isis-killer-beheading-video-story-top Fulham promoted to Premier League with Championship playoff final win
May 28, 2018 - 19:29
Villa threw everything forward in the nail-biting closing stages but Fulham held on without too many alarms. No wonder the Serbian forward says: 'I'm so exhausted right now, like never in my life, I swear.

isis-killer-beheading-video-story-top Open thread game five: Houston Rockets versus Golden State Warriors
May 28, 2018 - 19:22
The Warriors have plenty of experience performing in pressure-packed Game 7s and thrive in these conditions. The 22-year-old scored two points and grabbed two rebounds and a steal in four minutes in game six.