Canada to Buy Kinder Morgan Pipeline for $3.5 Billion

Canada to Buy Kinder Morgan Pipeline for $3.5 Billion

Canada to Buy Kinder Morgan Pipeline for $3.5 Billion

To do so, Canada will pay the pipeline's current owner, Kinder Morgan, $4.5 billion in Canadian dollars - about $3.5 billion in US currency.

The federal Liberal government has agreed to buy the troubled Trans Mountain expansion project from Kinder Morgan to ensure the controversial expansion of an Alberta-to-B.C. crude oil pipeline gets built.

"This is a great set of assets that we are now expanding and expect to continue to find opportunities to expand in the future", Kean said.

"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".

Morneau said more spending would be needed to complete the expansion, but gave no precise financial details, and stressed he felt the project should be returned to the private sector.

Federal Finance Minister Bill Morneau made the announcement from Ottawa and says the deal represents a sound investment.

Building the pipeline in the face of aggressive opposition in British Columbia "could ultimately require significant resources from the Royal Canadian Mounted Police", they noted, and the federal Liberals may be "highly reluctant to use force" ahead of next year's federal election, the analysts suggested.

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If no new buyer is reached by July 22, Kinder Morgan will present the $4.5 billion offer from Canada to its shareholders for a vote before the end of July.

Morneau said in return, the company will move forward with its plan to twin the pipeline this summer, while the sale is finalized, which is expected to happen in August.

This despite Obama's hypocritical veto of the Keystone XL pipeline to move Alberta's oil to the U.S. Gulf Coast.

Kamloops' two MLAs blame Premier John Horgan for what they called "a sad, sad day for this country". "Horgan and the NDP continue to play politics with British Columbia's future, and this time it will cost us billions".

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.

Perhaps when the federal government is paying the bills, it will take B.C.'s stonewalling of Trans Mountain more seriously.

Morneau has already unveiled the third option: leaving original project architect Kinder Morgan to handle construction, but covering any cost overruns incurred as a result of political interference.

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The project will duplicate an existing 1,150km pipeline, allowing it to ship up to 890,000 barrels of oil a day from landlocked Alberta to the Pacific coast of neighbouring British Columbia, in western Canada, for export overseas.

"Today's agreement will help advance Canada as an energy leader, as a place where good projects get built". She said she predicts the price tag will make the assets a tough sell for Ottawa should the feds look to unload the project back into the private market.

The provincial government will continue to "defend British Columbia's interests within the rule of law", he said.

Her tweet also stated "this project has more certainty than ever before".

"Canada's purchase of a tar sands pipeline and expansion project eviscerates any claim it has to climate leadership at a key moment - doubling down on the world's dirtiest oil, rather than closing the gap on the country's Paris climate commitments", said Anthony Swift, the Canada program director for the US -based Natural Resources Defense Council, in a statement.

"Trudeau is gambling billions of Canadian taxpayer dollars on an oil project that will never be built", Mike Hudema, a climate and energy Campaigner at Greenpeace Canada, declared in a statement on Tuesday.

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