Canadian government buys Trans Mountain project for $4.5 billion


Image Credit CFJC Today

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.

The price tag is less than the company's estimated $7.4-billion projected cost but taxpayers will be on the hook for $4.5 billion according to details released by Finance Minister Bill Morneau and Natural Resources Minister Jim Carr at a news conference Tuesday.

The move to buy the pipeline from an affiliate of USA -based pipeline company Kinder Morgan follows the company's threat to pull the plug on the expansion because of delays caused by opponents of the project.

"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. "It's still the right thing for the country", he said.

The plan echoes how the federal government financed and managed shares in General Motors and Chrysler in 2009 during the financial crisis.

Morneau couldn't say what additional costs, if any, would be incurred by Canadians in building the pipeline. "They pay good economic rents and they're long-life assets", he said.

This despite Obama's hypocritical veto of the Keystone XL pipeline to move Alberta's oil to the U.S. Gulf Coast.

The deal for the bulk of the Canadian subsidiary of Texas-based Kinder Morgan Sale proceeds are about $12 per share after capital gains taxes, he said.

BC Liberal party leader Andrew Wilkinson didn't mince words in a statement blaming the purchase on Premier John Horgan's continued opposition to the project.

Alberta will contribute up to C$2 billion toward unforeseen costs, payable once the project is complete, Premier Rachel Notley said.

The twinning of the 1,150-kilometre-long Trans Mountain pipeline between Strathcona County, near Edmonton, and Burnaby, B.C., will almost triple its capacity to an estimated 890,000 barrels a day and increase traffic off B.C.'s coast from approximately five tankers to 34 tankers a month.

The PM is sticking with his message of reassurance, even though there is no deal with Kinder Morgan yet ahead of Thursday's deadline.

But he also acknowledged: "It will be a federally owned project and that has some difference in terms of the paramountcy of the federal government".

Under the agreement between the federal government and Kinder Morgan, the company would resume construction on the project, which was put on hold in April.

Canada needs projects like the expansion created to triple Trans Mountain's capacity to move crude oil and refined products from the Alberta oilsands and Edmonton refining complex to the West Coast, said Chris Bloomer, CEO of the Canadian Energy Pipeline Association.

"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.

The environmentalists and anti-pipeline First Nations (not all of which oppose the project) will blame the greedy, foreign oil barons and their political puppets in Canada.

The issue has divided two Canadian provinces, pitting Alberta's government against leaders in British Columbia.

Notley added: "This is the most certainty this project has ever had".

"Canada stands to sacrifice its global reputation, irreplaceable iconic species like the Southern resident Killer Whales, and its commitments to meet its Paris Climate targets and to reconcile with Indigenous people - all while putting enormous risk on Canadian taxpayers".

Related News:

  • Major League Baseball rules Anthony Rizzo's slide was illegal

    Major League Baseball rules Anthony Rizzo's slide was illegal

    Pirates manager Clint Hurdle anxious that the original call meant it was "open season" on catchers across the league. Rizzo did not deny he tried to make contact with Diaz. "I'm not trying to hurt anyone". "...
    PUBG Has Reportedly Filed A Lawsuit Against Fortnite

    PUBG Has Reportedly Filed A Lawsuit Against Fortnite

    However, analysts suggest the popularity of PUBG has waned since January, while Fortnite continues to attract more players. The companies behind the two biggest battle royale video games are about to see who's the last man standing in court.
    Diplomacy heats up before summit, with trips by United States , N. Korea

    Diplomacy heats up before summit, with trips by United States , N. Korea

    It earlier reported that he was heading straight to Washington , but later said he changed his flight to NY . The North Korean delegation is led by Kim Chang Son, a top logistics and protocol official, Yonhap said.
  • Serena didn't play beer pong at royal wedding

    Serena didn't play beer pong at royal wedding

    He had won just one match on clay heading to the French Open and entered the tournament at No. 30, his worse ranking since 2008. Third-seeded Marin Cilic has kicked off his Roland Garros campaign with a straight-sets win over James Duckworth of Australia.
    Liverpool closing in on £40m signing of Fabinho from Monaco

    Liverpool closing in on £40m signing of Fabinho from Monaco

    He also registered 83 tackles, 30 more than any other player on his club, who finished second behind Paris Saint-Germain. He also spoke with fellow Brazilian, Roberto Firmino about moving to Anfield. "Honestly, I don't know".
    Van Dijk: Liverpool is my team, Anfield is my home

    Van Dijk: Liverpool is my team, Anfield is my home

    As for Real fans, it's fair to say they were beaming after winning a third Champions League in a row. Rather, Liverpool fans who were present in the Principality Stadium that day did the ground work.
  • Mega Man 11 gameplay trailer reveals October release date

    Mega Man 11 gameplay trailer reveals October release date

    Thankfully, it will be available on myriad platforms in order to offer practically everyone the chance to play it at launch. But using them too much can cause Mega Man to overheat, leaving him unable to use the Double Gears until he cools down.

    Actress Cornelia Frances dies after battle with cancer

    Of her ongoing positivity, Lawrence told New Idea in April " Ever the trouper, she remains positive and is hoping for a miracle ". That 60 years in the industry ... it's been a wonderful road and I've loved every minute of it.
    Amazon Echo records family conversation, sends it to random person

    Amazon Echo records family conversation, sends it to random person

    She further wanted to return all of Amazon Alexa devices and get her money back, which Amazon has refused to do at this time. The couple from Portland in OR had joked that their Amazon Alexa might be listening in to their private conversations.
  • European Union - Brussels proposes total ban of some plastic products

    European Union - Brussels proposes total ban of some plastic products

    The EU is also planning a producer-funded, recycling scheme for plastics, similar to waste electronics or used tyres. This could create new jobs, efficiency savings and prevent an estimated €22 billion in environmental damage by 2030.
    New Video Game Simulates School Shooting

    New Video Game Simulates School Shooting

    " Active Shooter ", which is set to be released in early June, will be sold on Steam , an online store for video games . Why? In the US , where guns are easier to procure than abortions, there are over 33,000 gun deaths per year.

    'Deadliest Catch' veteran, 38, found dead in his OR home

    Deadliest Catch , a Discover Channel docu-series that began in 2005 and is still now running, follows fishers in the Bering Sea. The paper said he was charged with DUI and heroin possession, among other things.

Most liked

Misleading tweets by liberal activists fuel Donald Trump on border issue
Until recently, families suspected of entering the US illegally were permitted to stay together until the case was completed, Time reports .

Blake Painter: ‘Deadliest Catch’ Star Reportedly Found Dead At Home
An autopsy and toxicology test are to be performed on Painter, who appeared on the second and third seasons of Deadliest Catch . Painter, an OR native, featured in the second and third seasons of Deadliest Catch , now in its 14th season.

Three dead after shooting in Belgium
Herman, a Belgian national born in 1982, had a criminal record that included theft, assault and drug offenses, RTBF reported . Pupils were evacuated to safety and people raced for cover in the ensuing gun battle when Herman came out firing at police.

Trump accuses Mueller team of 'meddling' in midterm elections without proof
Trump's first tweet came soon after the Mueller team targeted former Trump campaign aide Paul Manafort's business dealings. Trump has denied accusations of campaign collusion calling them "phoney" or without any basis.

Canada purchases Trans Mountain pipeline project for $4.5B
In return, Kinder Morgan will continue twinning the pipeline until the sale is finalized, which may not happen until August. That decision prompted the Alberta government to call an emergency cabinet meeting to come up with a response.

Kevin Durant Says Warriors Knew James Harden Would 'Wear Down'
Love shot below 40 percent from the field again previous year , averaging 16.0 points and 11.2 rebounds per game . Green was magnificent in the Cavs' 87-79 win over the Celtics in Game 7 of the conference finals on Sunday.

Sesame Street Files Lawsuit Against Upcoming Film
Sesame Street characters, clockwise from bottom left, Grover, Ernie, Bert, Cookie Monster, Elmo and Oscar the Grouch. Sesame claims the producers have " diluted and defiled Sesame's beloved Sesame Street children's television show".

More than 4,600 killed in Hurricane Maria
For comparison, the death toll from 2005's Hurricane Katrina - the costliest hurricane in USA history - was far lower, and estimated at 1,833.

Ivanka Tweets Photo With Son After Border Separations
US President Donald Trump implied the Democrats were behind the policy of removing children from their families. There's no law mandating that parents must be separated from their children.

No LCD iPhone next year and beyond
A shift to all OLED screens for iPhones would be challenging, given the sheer volume of the devices that Apple sells each year. However, OLED displays being only used in high-end iPhones will come to an end next year, reports Reuters .

Andrew Lincoln reportedly leaving 'The Walking Dead'
Reps for Lincoln did not immediately respond to Fox News' request for comment, while AMC declined to comment. Melissa McBride (Carol) is still around, as is Norman Reedus (Daryl).

NBA Finals TV Schedule, Series Odds & More
I'm in the camp who believes LeBron James can bypass Micahel Jordan by doing something nobody believes can be done. They will face each other in the fourth consecutive Finals matchup between their teams beginning Thursday.

U.S. to Impose 25% Tariff on Tech Goods From China - White House
The White House has planned to send Wilbur Ross, the commerce secretary, to China on June 2 to continue the trade negotiations. Embassy after U.S. officials had trade talks with Chinese counterparts, in Beijing, China, May 4, 2018.

UCF fans take issue with Las Vegas Golden Knights' national anthem twist
The Golden Knights , made their championship debut on Monday in their first season in existence. In a playoff season such as this one, nothing should surprise us anymore.

Alberto batters Gulf Coast as it heads north
Polk County Local Government warned residents on its Facebook page to watch for flash flood warnings through Wednesday . With maximum sustained winds of 45 miles per hour (72 kph), Alberto was moving north at 9 miles per hour (14 kph).