Canada to Buy Kinder Morgan Pipeline for $3.5 Billion

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Cheam Chief Ernie Crey welcomed the news Tuesday of the $4.5 billion federal buyout of the Trans Mountain Pipeline and Kinder Morgan Canada's assets.

Crey wasn't completely surprised either by the bailout decision announced by Liberal government Ministers Bill Morneau and Jim Carr.

Once the sale is finalized, Ottawa plans to take on remaining construction of the addition to the pipeline. "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.

The provincial government will continue to "defend British Columbia's interests within the rule of law", he said. He called for confidence to be restored in Canada. That would end British Columbia's efforts to regulate the project, argue government officials.

Because once he was elected in 2015, he was confronted by the fact our economy is losing $15 billion annually having to sell nearly all of our oil to the a huge discount, since we have no way to get it to global markets.

North American oil prices are marching toward $65 United States a barrel this month, giving the industry a boost after the market collapsed three years ago.

"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", Morneau told reporters. That would no longer be a concern - the federal government could simply choose to carry on without them if it owns the project, according to Austin.

"There's $4.5 billion to purchase the assets, then you have construction costs on top of that, indemnity costs", McLeod said. "I'm quite certain that this will go down as an epic financial, economic boondoggle".

According to McLeod, the project should have been left in the private marketplace. "Every year they have to spend more on maintenance to keep it running", added Allan. "We have a pipeline to build".

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"It's really quite a turnup for the books for the Canadian government to buy itself a pipeline", he said. "That is wrong is so many ways". And let's not forget 2009, when the federal and Ontario governments spent more than $13 billion to bail out North American auto makers. "At a critical moment in history, the government is indeed doing "whatever it takes" to undermine our transition to a safe, clean, renewable energy future".

Twenty-nine kilometres of the pipeline runs through Kamloops.

"This is a major step forward for all Canadians".

The federal government's acquisition of the project "has not changed the course of the government of British Columbia" and the province has "no intention" of withdrawing its legal reference case, Premier John Horgan told reporters Tuesday in Victoria.

Kinder Morgan Canada Ltd. listed on the Toronto Stock Exchange on May 30 past year, luring investors with the promise of building the massive Trans Mountain expansion project.

"They were asking for certainty and a pathway to get the get the project built", he said.

Kinder Morgan last month gave Ottawa an ultimatum: Chairman Steve Kean said the company would suspend all work on the expansion project entirely if the legal issues surrounding it can not be resolved by May 31, adding that it would not continue risking shareholder funds on the project unless the clouds over it clear.

Veteran B.C. NDP MP Nathan Cullen suggested Ottawa was prioritizing a pipeline over safe drinking water for Indigenous children on reserves.

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.