Five next steps needed to complete the Trans Mountain project

Canada to buy Trans Mountain pipeline for $4.5 billion to ensure it gets built

Canada to buy Trans Mountain pipeline for $4.5 billion to ensure it gets built

The project would create tens of thousands of jobs in B.C. and Alberta, something Morneau said was of vital importance to Canada's economy.

In an extraordinary move aimed at boosting Canada's tar sands industry in the wake of sharp environmental opposition, the Canadian government said Tuesday that it will spend $3.5 billion to buy the Trans Mountain pipeline and triple its capacity.

Kinder Morgan investors must still vote on the sale, which is scheduled to close in August, but the deal will allow construction to resume immediately, the minister said.

Premier John Horgan says he will continue the fight to protect British Columbia's coast from the consequences of an oil spill regardless of who owns the Trans Mountain pipeline. He wouldn't say which groups were interested in purchasing the project, or if any of them were from the energy sector.

Among the reasons the company cited when it threatened to walk away in April was inordinate permit delays by the city of Burnaby, where the pipeline ends.

"It's the kind of epic disaster of the last century I couldn't imagine a modern government doing, but that's exactly what we are doing", May said.

In a press release, Anna Gerrard of Climate Justice Edmonton said the pipeline purchase is a "misuse of public funds and political power", and that the project is guaranteed to fail.

The two western provinces have been sparring over the pipeline, a situation that Mr Morneau said can not be allowed to "fester".

Finance Minister Bill Morneau has hinted there'll be additional costs to the Trans Mountain project, but says they'll be defrayed by revenue generated by the pipeline itself.

Premier Scott Moe said he hopes Ottawa's plan works.




"We are purchasing the assets; we are purchasing the existing assets, and the investment in the twinning of that pipeline, and those assets are what is required for us to move forward with the expansion", he said.

Alberta's government estimated that pipeline projects like Trans Mountain could stimulate economic growth by as much as 2 percent by 2023. Alberta and British Columbia have also been at odds over the potential environmental risks of the project.

North Vancouver MP Jonathan Wilkinson defended the government's decision to buy the pipeline project.

"The good news though is that I now know the owner and have his phone number and I can call him with my concerns", he told CBC on Tuesday.

Many expect that the new federal ownership will help smooth out some of the provincial roadblocks Kinder Morgan faced when it first set out to expand the oil line, including a legal case launched by the BC government and protests from environmentalists and First Nations groups.

"It doesn't matter if it's the Canadian government or profit-making organization, we can directly, physically stop it". Social activist and author Naomi Klein called the government's plans a "desperate scam". "Really the only difference is Kinder Morgan's convinced Canada to pay for the project".

On Monday, she pleaded guilty to criminal contempt in relation to her March arrest during a pipeline protest.

Opposition to the government's proposal comes also from fiscal conservatives, who question the logic behind what they describe as a government bailout.

"Every time that the government has taken over these projects, we've found that they have lost money; they always have been subsidized by taxpayers and those subsidies continue until such time as the federal government gets out of the business". Khelsilem said the decision rewards the Texas-based company and transfers the risk to Canadian taxpayers. The purchase is subject to the approval of Kinder Morgan shareholders.

Recommended News

  • Ivanka Tweets Photo With Son After Border Separations

    Since October, more than 700 children have been separated from their parents, the New York Times reports . "They thought it was recent pictures in order to make us look bad, but backfires".
    Texas A&M among the teams that Texas will host in NCAA regional

    Texas A&M among the teams that Texas will host in NCAA regional

    UF saw its streak 19 consecutive weekend series wins fall when it was swept by Mississippi State to close out the regular season. They'll open Friday playing the No. 3 seed Ohio State and advancing to play either the Pirates or No. 4-seeded UNC Wilmington.
    Canada to host Global T20 Canada League in June

    Canada to host Global T20 Canada League in June

    Also, he is banned from playing the BBL this season. "He will be great in the changing rooms with younger players". The ban saw Steve Smith lose his national captaincy and is hence, not allowed to play in global or state cricket.
  • 'Sesame Street' creators sue over raunchy puppet film

    'Sesame Street' creators sue over raunchy puppet film

    Sesame says STX does not own, control or have the right to use " Sesame Street ". It added that the marketing material "irreparably harms" Sesame Street .
    'Solo' sputters in takeoff at box office with US$83.3M

    'Solo' sputters in takeoff at box office with US$83.3M

    Its global box office gross is really no better as it brought in a massively disappointing $65 million. Disney distribution chief Dave Hollis told the film news website.
    Salah Suffers Injury In Champions League Final, Leaves Field In Tears

    Salah Suffers Injury In Champions League Final, Leaves Field In Tears

    Asked if Salah can star again for the Reds in the final, the 2005 Champions League victor told talkSPORT: "Yeah, definitely". The 25-year-old was forced off with what looked a shoulder injury in the 31st minute of Saturday's final in Kiev.
  • Subtropical storm Alberto whips up mini waterspout in a swimming pool

    Subtropical storm Alberto whips up mini waterspout in a swimming pool

    A tornado threat exists in the front-right quadrants of the storm, which today is northern Florida and most of Georgia and SC . While the storm has not strengthened into a hurricane, it does threaten residents and vacationers across the US Southeast.
    Sterlite Copper protest hits 32,500 jobs at Tuticorn plant

    Sterlite Copper protest hits 32,500 jobs at Tuticorn plant

    The deputy CM spoke to reporters in Thoothukudi and said that compensation to the injured were being paid. As per the government the mob clashed with police, and set vehicles and public property on fire.
    Rashid Khan's all-round effort guide Sunrisers Hyderabad to IPL final

    Rashid Khan's all-round effort guide Sunrisers Hyderabad to IPL final

    However, a promo on Hotstar showing the KKR taking on the CSK in the final has got people asking if the IPL 2018 is fixed. The Eden pitch has always supported the spinners and it is expected to be the same for the second qualifier as well.
  • White House to impose 25% tariff on $50bn worth of Chinese goods

    In mid-May, China agreed to increase purchases of U.S. agriculture and energy products, and last week, the U.S. Treasury Secretary Steven Mnuchin said a trade war with China was " on hold " less than 10 days ago.
    Exit polls in Ireland point to landslide abortion rights victory

    Exit polls in Ireland point to landslide abortion rights victory

    Thousands of Irish citizens have been returning home to vote in a referendum on whether to liberalize abortion laws. As previously noted on Townhall, "the Irish referendum is on article 40.3.3, better known as Ireland's 8amendment".
    US  warns teething medicines unsafe, wants them off shelves

    US warns teething medicines unsafe, wants them off shelves

    The agency is also asking companies to stop selling the products and said it will take official action to remove them from stores. Benzocaine is used in products to treat not just teething, but also sore throats, canker sores , and other oral irritations.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.