Canada to Buy Kinder Morgan Pipeline for $3.5 Billion
May 31 2018 by Elias Hubbard
Kinder Morgan past year said it was about $7.4 billion, plus about $1 billion already spent - an estimate that's now considered low.
Finance Minister Bill Morneau has proposed sacrificing Canadian taxpayers to bail out an uneconomic US pipeline owned by former Enron executives.
Singh said there is a long tradition of non-violent civil disobedience in Canada and he will not condemn people who use protests to express their frustration and anger.
What all this shows is the abject failure of Trudeau's and Notley's superficial and absurd belief that imposing a national carbon price on Canadians would give them the "social licence" to build the Trans Mountain pipeline, with the blessings of B.C.'s anti-oil government, Indigenous objectors and radical environmentalists.
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.
Once the sale is final, Canada will continue construction on its own in hopes of selling the pipeline down the road.
"If they didn't spend it on that, they'd spend it on something else", she said.
Gwyn Morgan, former CEO of Encana, joins BNN Bloomberg to provide perspective on Ottawa's decision to buy Trans Mountain.
"The deal announced today puts people to work building the pipeline right away and it will help us build up the things that matter to working families, such as our schools and our hospitals".
The forecast price of oil, in particular, West Texas Intermediate which is averaging at US$70 a barrel could be an "upside risk to the forecast", the report said.
The Canadian Energy Pipeline Association "is deeply concerned that the government needed to purchase the project for it to be built and to assert federal jurisdiction", the group's president and CEO, Chris Bloomer, said in a statement.
"It does not seem fair that we couldn't get the level of support". Construction costs of the pipeline are estimated to be at $7.4-billion-funds that the liberals may have to scrap together from taxpayer dollars.
According to Hudema, the movement opposing the project " will not back down" following the government's purchase.
"It does not change the course that the Government of British Columbia has been on", Horgan said.
"The message that I see in all of this is the federal government recognizes the oil and gas industry and its importance in resource development". On the bad news side, it speaks to how hard it is to get a major resource-oriented project built in this country today.
The B.C. government is carrying on with its reference case against the Trans Mountain pipeline expansion, Premier John Horgan told Prime Minister Justin Trudeau in an early-morning phone call Tuesday. After it completes the project, Canada plans to sell the pipeline.
Opposition to the government's proposal comes also from fiscal conservatives, who question the logic behind what they describe as a government bailout. The project has been held up by local resistance, and Kinder Morgan announced in April that it would halt spending on the project due to opposition from British Columbia's provincial government. He promised that this project could not go through unless it was done through a vigorous review, which he broke'.