Trans Mountain court action continues, John Horgan says
30 May, 2018, 20:10 | Author: Shawna Walton
"It will ensure that we are about to safely get Canadian oil resources to world markets, where we can get a fair price for them", Morneau said.
The Trans Mountain extension would connect Alberta to British Columbia and triple Kinder Morgan's capacity.
Ottawa approved the expansion in late 2016 but the project faced permit delays and court challenges in B.C. The issue came to a boil in late January when B.C. Premier John Horgan said his government would seek to limit any extra oil shipments through the province due to concerns over oil spills. "The government responded and that's their business".
'We will not stand down no matter who buys this ill-fated and exorbitantly priced pipeline'.
"I think a lot of us who knocked on doors for the Trudeau government really believed them when they said they were going to bring evidence-based analysis and science and democratic process back to pipeline reviews".
Peter Milobar, Stone's counterpart in Kamloops-North Thompson, blamed Horgan and Environment Minister George Heyman for causing the impasse that led to the federal government's decision, saying it's time the two "become regulators, and not activists".
"Canada's purchase may "'be a vehicle to indemnify the project against regulatory risk", Katie Bays, an analyst with Height Securities LLC in Washington, said in a telephone interview. Steven J. Kean, the president of Kinder Morgan, called it a "great day for Canada, for our customers and for our employees".
"While these are exceptional circumstances, we are pleased that the Trans Mountain Expansion project will proceed, beginning this construction season", spokesperson Alita Fabiano said in a statement.
McLeod says she doesn't how the purchase makes it any more likely the pipeline project will go foward.
Meanwhile, Green Party Leader Elizabeth May pleaded guilty to criminal contempt after she protested at the Kinder Morgan construction site, violating a B.C. court injunction. Notley said construction is to resume on the line within weeks.
The deal ensures construction that was suspended April 8 by Kinder Morgan's jittery investors will now begin immediately under the ownership of a Crown corporation, with plans for the federal government to seek other investors to soon take it over.
Mike Hudema, a climate and energy campaigner at Greenpeace Canada, said the government "has just signed up to captain the Titanic of tar sands oil pipelines, putting it on a collision course with its commitments to indigenous rights and the Paris climate agreement".
To do so, Canada will pay the pipeline's current owner, Kinder Morgan, $4.5 billion in Canadian dollars - about $3.5 billion in USA currency.
"This indemnification would allow Kinder Morgan to finish what they started - what they received federal and B.C. provincial approval to do".
In the wake of the federal government's decision to buy the Trans Mountain pipeline from Kinder Morgan, industry analysts and climate groups agree on at least one thing: The political battle over the expansion of the contentious pipeline is not over. Those costs would be covered either directly or indirectly through reimbursement by the Canadian taxpayer.
In addition to the initial costs of paying to nationalize a massive energy enterprise, Canada's CBC reports that the government could be obliged to spend billions more to finish the expansion.
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