Ottawa Buying Trans Mountain Pipeline Assets for $4.5 billion

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Canada has the world's third largest oil reserves but 99 percent of its exports now go to refiners in the USA, where limits on pipeline and refinery capacity mean Canadian oil sells at a discount.

While the Canadian government says it does not plan to be the long-term owner of the pipeline, its decision to purchase the project on Tuesday is part of an effort to ensure the massive pipeline expansion proceeds this summer as planned.

The purchase remains subject to the approval of Kinder Morgan shareholders.

"The project has always been in the national interest". "But, with the recent rally in oil prices, there are upside risks to the forecast".

But British Columbia's social democratic government recently joined environmental activists' fight against the pipeline, provoking a trade row with Alberta and leading Kinder Morgan to temporarily halt its construction until the dispute was resolved. In return, the province would receive an equity or other stake in the pipeline, depending on the size of its investment.

Notley says there is more certainty around the project than there has ever been and she doesn't plan to use her province's legislation to regulate the flow of oil exports for now. His days of getting out of Canada to bask in the adoring selfies are over.

"It's really quite a turnup for the books for the Canadian government to buy itself a pipeline", he said.

"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.

"Now we're committed to building the expansion, but they have not announced at all how they are going to finance the expansion", said May.

Canada only has two options for selling that oil.

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The move drew immediate criticism from both sides of the political spectrum, and could hurt Trudeau's popularity in the key British Columbia battleground in a 2019 federal election. Moe also questioned how much more money taxpayers will have to pay for the construction of the project and what the move signals to investors. He called for confidence to be restored in Canada.

Morneau said Indigenous groups, pension funds, and others have expressed interest in the project. Vancouver Mayor Gregor Robertson calls the pipeline an unacceptable risk that threatens 10,000 jobs in the harbor.

Meanwhile, the court cases to quash the permits for the project remain, said May.

In recent months, thousands have protested against the project across Canada. His government needs the support of three lawmakers from British Columbia's Green Party to stay in power. During protests in March, 172 people were arrested in one week.

According to McLeod, the project should have been left in the private marketplace.

Opposition to the news was swift Tuesday morning.

"The Trans Mountain Expansion faces even steeper obstacles and will soon become the third, and Trudeau just put the public on the hook for the costs", Hudema said.

The Export Development Bank of Canada will finance the plan and create a Crown corporation to run and manage the pipeline during Canada's ownership period.

Alberta province also pledged to provide "emergency funding" for the pipeline's construction, if needed.