Federal Government to Buy Trans Mountain Pipeline for $4.5-Billion

Federal Government to Buy Trans Mountain Pipeline for $4.5-Billion

John Horgan addressed media at the legislature Tuesday morning on the heels of federal finance minister Bill Morneau's earlier announcement that Ottawa plans to buy the project, along with Kinder Morgan Canada's core assets, for $4.5 billion. Finance Minister Bill Morneau told media that the next step will be to sell it off to the highest bidder once market conditions allow. If it ever finds an investor to take the pipeline off its hands in the future, it will be for far less than what the taxpayer has paid for it.

"So our message today is simple: when we are faced with an exceptional situation that puts jobs at risk, that puts our worldwide reputation on the line, our government is prepared to take action", he said.

Canada's government has said it is buying a controversial pipeline expansion project to ensure it gets built in the face of stiff opposition from environmental activists and a regional government.

The purchase will be financed by Export Development Canada and includes; the pipeline, pumping stations, the marine terminal in Burnaby, B.C. and rights of way along the pipeline between Edmonton and Vancouver.

Both the federal government and the provincial government of Alberta, which would be the main beneficiary of the expansion, have made it abundantly clear they are behind the project, and yet neither has managed to budge B.C.'s government, even with the threat-by Alberta-to turn the current oil tap off.

"Tens of thousands of B.C.jobs depend on pristine coastal and inland waters", said Horgan.

Kinder Morgan Canada and the Canadian government have agreed to work to seek a third party buyer for the Trans Mountain Pipeline system and the expansion project (TMEP) through July 22, 2018, Kinder Morgan Canada said.

More news: Daniel Ricciardo claims Monaco victory despite electrical problems

The Trans Mountain expansion is projected to lead to a tanker traffic balloon from about 60 to more than 400 vessels annually as the pipeline flow increases from 300,000 to 890,000 barrels per day.

But he also acknowledged: "It will be a federally owned project and that has some difference in terms of the paramountcy of the federal government".

Morneau said Indigenous groups, pension funds, and others have expressed interest in the project.

"Any climate change plan that ignores the needs of working people is doomed to fail", Alberta Premier Rachel Notley said after the deal was announced.

Presumably, the cost to the new owners - us - will be about the same. "I think that's been reinforced by the fact that Kinder Morgan was able to build up through different open seasons to a high level of commitment (from shippers)", he said. Canada will continue to need major pipeline projects to deliver responsibly-produced Canadian energy to markets around the world while ensuring a fair price for our resources.

"The majority of Canadians support this project". A lack of capacity in pipelines or in rail cars to ship oil produced in Alberta is also hurting Canada's energy sector.

"There is a very strong business case for this pipeline", Prime Minister Justin Trudeau told Bloomberg Television, saying the government takeover meant "a lot of the legal barriers and a lot of the challenge points actually disappear".

Related Articles

  • Belgium Shooting: Gunman Disarmed Police

    Belgium Shooting: Gunman Disarmed Police

    British Prime Minister Theresa May said the United Kingdom "stands resolute with our Belgian allies against terror ". Police subsequently killed the gunman in a shootout after he entered a nearby high school and took a woman hostage.
    Mohamed Salah Speaks On His Chances Of Playing In The World Cup

    Mohamed Salah Speaks On His Chances Of Playing In The World Cup

    He was voted Liverpool's Players of the Year and also scooped the PFA and Football Writers' Player of the Year awards. Meanwhile, an entire nation were hoping against hope that the injury wasn't as bad as it looked.
    Al Horford, Celtics see shot at Finals slip away

    Al Horford, Celtics see shot at Finals slip away

    James didn't look very pleased (and borderline shocked) with the bump, but Tatum said he meant no disrespect by it after the game. James was there for all of it, playing in all 82 games for the first time in his career and leading the league in minutes.
  • Parkland parents decry game that simulates school shootings

    Parkland parents decry game that simulates school shootings

    A Change.org petition for the game went up recently and garnered over 100,000 signatures before the game ended up being removed. A study released in January by the University of York suggests that there is no link between violent video games and behavior.
    Bethesda starts a new Fallout teaser

    Bethesda starts a new Fallout teaser

    We expect Bethesda to reveal more details soon, so stay tuned for more! Let us know your thoughts in the comments section below. Possible news of for a new " Fallout " comes nearly three years after the announcement of " Fallout 4 " at E3 2015.
    Teacher Who Tackled Indiana Shooter After Being Shot Breaks Silence

    Teacher Who Tackled Indiana Shooter After Being Shot Breaks Silence

    Ethan Stonebraker told ABC News that Seaman "immediately ran at him, swatted a gun out of his hand and tackled him to the ground". Janna Lynas of Noblesville, whose son was coached by Seaman in football, said the teacher is a hero "and everyone here feels it".
  • France offers citizenship to Malian immigrant who scaled building to rescue child

    France offers citizenship to Malian immigrant who scaled building to rescue child

    We're sure some adrenaline helped, too - and maybe a radioactive spider bite. The mother was not in Paris at the time, it is believed. Then he saw the boy, whom authorities later said was 4.
    Vancouver Canucks: Who to cheer for in Stanley Cup Final

    Vancouver Canucks: Who to cheer for in Stanley Cup Final

    Even Gallant was unceremoniously dumped from his last job , kicked off the team bus after being fired by the Florida Panthers. For others, it began when Foley announced the team would be called the Golden Knights and started selling season tickets.
    SKorea Media: June 1 North-South Meeting Back On

    SKorea Media: June 1 North-South Meeting Back On

    A senior White House official had said on Thursday that organizing a summit by June 12 could be a challenge. After the earlier news the summit was called off, Democrats had criticised Trump for the decision.
  • Valerie Jarrett responds to Roseanne's racist Twitter rant: 'A teaching moment'

    Valerie Jarrett responds to Roseanne's racist Twitter rant: 'A teaching moment'

    A handful of television personalities have been pushed off the air, either temporarily or permanently, after advertiser boycotts. In a statement on Tuesday, ABC Entertainment president Channing Dungey announced the network is cancelling Roseanne .
    Millions to hit the roads for the holiday weekend

    Millions to hit the roads for the holiday weekend

    AAA says that fifteen states, including New York, New Jersey and IL , are already facing $3 average gas prices or higher. Gas prices haven't been this high since 2014 and the climb isn't over yet.
    Centre working on long-term solution on fuel price hike: Pradhan

    Centre working on long-term solution on fuel price hike: Pradhan

    As of now, the excise duties levied by the Centre in last three years has gone up 105% ( petrol ) and 300% (diesel). And oil producers are now getting paid global rates in dollar terms even when they produce oil from Indian fields.