Canada Buys Controversial Oil Pipeline, Ensures Its Expansion
- Author: Joey Payne Jun 01, 2018,
Jun 01, 2018, 2:19
Experts were also quick to add it's unlikely Ottawa will succeed if it tries to sell the Trans Mountain assets it is buying from Kinder Morgan Canada Ltd. while the contentious expansion has yet to begin pumping oil.
Canada's finance minister, Bill Morneau, is expected to announce on Tuesday whether or not the government plans to support the expansion of the pipeline expansion, the Canadian Press reported earlier on Monday.
This, regardless of opposition from First Nations, who incidentally never ceded the rights to their lands to the Canadian government.
The government has said it is willing to cover the costs of budget overruns on the pipeline caused by political interference from British Columbia, but the company has not yet indicated if that will be enough to convince it to put shovels in the ground.
We are endeavouring to move positively into the next decades without further harming the Earth.
"Today, we've taken action to create & protect jobs in Alberta and BC, and restart construction on the TMX pipeline expansion, a vital project in the national interest", Trudeau said in a tweet. In my opinion, it was also his final and fatal fall from grace.
Kinder Morgan, which stopped all "non-essential" work on the project in April, had said it would speak with stakeholders before making a final decision on May 31. "We are pleased to reach agreement on a transaction that benefits the people of Canada, TMEP shippers and KML shareholders", said KML Chairman and Chief Executive Officer Steve Kean.
If the federal government manages to overcome strong opposition in British Columbia and complete construction of the Trans Mountain pipeline expansion, experts say it will have an asset that will be of great interest to potential buyers. The court challenge was filed about two weeks later.
Energy East would have been a job-creation bonanza, expected to create nearly 3,720 jobs during the construction phase and 97 permanent jobs once the pipeline was built.
Morneau stressed repeatedly the pipeline is commercially viable and profitable.
Canada's oil sector has been stung in the past year as foreign energy companies retreated amid concerns about the environmental toll, high production costs and a risky regulatory regime.
The only difference now is that pipeline critics will be demonstrating against a federal Crown corporation rather than a privately owned US company.
British Columbia Premier John Horgan said he's anxious about the "catastrophic consequences" should there be a spill, regardless of the owner, and will continue to fight it in court. "These are exceptional circumstances and should not be considered the norm", the association said.
"It does not change the course that the Government of British Columbia has been on", Horgan said.
Notley's New Democrats have been pushing for Trans Mountain since they were elected in 2015.
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. "It polarized us. That is not who we are", Carr told the news conference.
"This is an extremely sad day for Canadian taxpayers", Conservative Leader Andrew Scheer said during question period.
When comparing other options, pipelines are cheaper, safer and emissions are reduced, the letter reads.