Published: Thu, May 31, 2018
Sci-tech | By Brandy Patterson

Canada purchases Trans Mountain pipeline project for $4.5B

Canada purchases Trans Mountain pipeline project for $4.5B

All of that made Kinder Morgan more than willing to walk away, putting intense pressure on the Canadian government to resolve the dispute.

The pipeline purchase is expected to close in August.

Prime Minister Justin Trudeau had vowed "to get that pipeline built", but pipeline resistance groups aren't backing down, either. New Democrat MP Nathan Cullen ridiculed Trudeau for his justification for buying the pipeline.

Mr. Trudeau took the joke in stride, responding that his grandfather owned gas stations, so perhaps it's appropriate his government is dropping $4.5-billion to take over the controversial energy project from Kinder Morgan Inc. The project will cost an estimated $7.4 billion more to finish.

Morneau reiterated that multiple potential investors have approached the government.

Has the announcement that the federal government is purchasing the Trans Mountain Pipeline triggered you to change how you would vote in the next election? "We support improving market access to ensure Canada achieves fair recognition and full value for its energy resources". The Alberta government is also backing the purchase by providing $2 billion in emergency funding "for any unforeseen costs, if needed".

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Alberta Premier Rachel Notley cheered the news on Twitter. We have met the deadline, " she tweeted.

"Because the crisis has passed, at least for now ... I don't know that we're going to be looking to exercise this (legislation) in the very near future", she said as beaming cabinet ministers stood behind her.

"We still have it". They are led by British Columbia, which is trying to stop the pipeline development in the courts on environmental grounds.

"This is a declaration of war against indigenous people because they're not recognizing our own sovereignty", says Kanahus Manuel, a Secwepemc midwife and mother of four. Trudeau has chose to fork over $C3.4 billion for a system that is a now a decade older with no plan on how to get the expansion constructed.

Canada will also offer federal loan guarantees to ensure construction continues through the 2018 season as part of the deal with the company.

Many indigenous people see the new pipeline as a threat to their lands, echoing concerns raised by Native Americans about the Keystone XL project in the US.

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Meanwhile, British Columbia's provincial government awaits a decision on a reference case with the B.C. Court of Appeal, looking for approval to restrict the flow of oil in the province.

Canada is buying a pipeline expansion project rather than risk it being derailed by protests and delays. It continues with "The vintage pipeline is a handyman's dream project".

This is why attacks like this from the Conservative party are so important moving forward.

Until now, Trudeau's government has used a soft tone to try to convince British Columbia to abandon its opposition to the pipeline, hoping not to alienate voters in the province before next year's general election. Then sand was thrown in the gears when John Horgan was elected NDP premier of B.C.

The ensuing uncertainty, paired with vociferous opposition from environmental groups and some Indigenous communities in B.C., prompted Kinder Morgan to halt investment until the federal government could inject some certainty into the project.

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