Gladu Critical Of Trans Mountain Pipeline Purchase

Gladu Critical Of Trans Mountain Pipeline Purchase

Ottawa will pay Kinder Morgan Can$4.5 billion ($3.5 billion) for the Trans Mountain pipeline, which is to move 890,000 barrels of oil a day from landlocked Alberta to the Pacific coast for export overseas, Finance Minister Bill Morneau told a news conference.

Morneau says it is not the Government of Canada's intent to be a long-term owner of the pipeline and it will work with investors to transfer the project and related assets to a new owner to ensure the project operates in the public's interest.

Moe wants to know how the federal government, in partnership with Alberta, owning the project will change the B.C. government's continued opposition to the project. Finance Minister Bill Morneau told media that the next step will be to sell it off to the highest bidder once market conditions allow.

One protester held up an image of Justin Trudeau covered in oil after Canada said controversial pipeline will get built.

"Typically in an infrastructure project you have one government involved, but here you got Alberta, B.C., you got the feds", de Bever said.

"We are pleased to have worked with the federal government to ensure construction resumes, certainty is increased and Albertans and all Canadians enjoy the many benefits of having the project go forward", Notley said in a statement.

Indigenous chiefs and First Nations have already assembled in Montreal earlier this week to protest the project, and Indigenous groups protesting the pipeline's construction in Burnaby said they'll push back regardless of Tuesday's announcement. The pending transaction has ramped up efforts to stop it, including a letter written and signed by more than 70 local leaders in the Pacific Northwest.

The ensuing uncertainty, paired with vociferous opposition from environmental groups and some Indigenous communities in B.C., prompted Kinder Morgan to halt investment until the federal government could inject some certainty into the project.

"We're going to see more of this until we get to a point where we have stable government that recognizes jurisdiction and also that recognizes that projects that have passed through the stages that they need to pass through the stages of approval should be built", he said. It didn't specify how it would spend the proceeds of the sale but did say it plans to continue to invest in Canada. "We get value out from money in and that's why we think this is a good opportunity".

Khelsilem said the decision rewards the Texas-based company and transfers the risk to Canadian taxpayers. The case was heard by the Federal Court of Appeal, which is expected to render a decision in June.

In this case, construction of the Trans Mountain expansion-assuming a private sector buyer isn't found immediately-will be in the hands of a federal Crown corporation.

The federal government insists the project falls under its jurisdiction.

"Maybe Kinder Morgan is a bit of an indicator ... of how the industry is looking at this".

Rueben George, spokesman for the Tsleil-Waututh's Sacred Trust Initiative which is opposing the pipeline, called the decision a bad risk for Canadian taxpayers.

On Tuesday, Ottawa repeated its promise to provide indemnification "to protect any prospective new owner from costs associated with political delays". "But, this is an attempt to say, look, this thing has to be built, it's in the national interest for it to be built", de Bever said.

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