BC Indigenous leader welcomes Trans Mountain pipeline buyout by feds

Share

Morneau criticized the New Democratic Party (NDP) government in British Columbia for creating "political uncertainty" and making it hard for Kinder Morgan to proceed with the project.

One institutional investor in NY, who spoke on condition of anonymity, said that if the pipeline is built he expects the federal government to make $2 billion in profit when it eventually sells the asset.

Opposition United Conservative Leader Jason Kenney said his caucus reluctantly backs the $2-billion investment because the line must be built.

It's one of the most controversial projects in B.C. history and now that Canadian taxpayers will likely be footing the bill for the Kinder Morgan Trans Mountain pipeline project, there are growing concerns about the economic gamble.

Gladu said it's particularly frustrating from Sarnia-Lambton's perspective after Ottawa denied funding for key projects.

However, despite the project receiving some financial assurance, the B.C. government says Kinder Morgan has yet to even apply for hundreds of necessary permits. "The big experienced pipeline operators don't seem to be stepping up... and that seems to say a lot".

The caveat, obviously, is whether the pipeline will be built.

An ardent supporter of the Trans-Mountain pipeline expansion, Kamloops-Thompson-Cariboo MP Cathy McLeod said she was disappointed to learn Tuesday that the federal Liberal government had purchased Kinder Morgan's Canadian assets. Horgan said that makes some difference in the paramountcy of the federal government, but the case will continue.

More news: The heartbreaking reaction as injury cruelly ends Mo Salah's Champions League final
More news: President Trump admits he repaid attorney Michael Cohen in financial form
More news: Hawaii volcano eruption: Could Kilauea volcano violently erupt in coming days?

Horgan's court reference - to see if B.C. has the constitutional authority to pass a regulation to limit flows of diluted bitumen in the new pipeline pending additional scientific research on how to clean it up a potential spill - spooked Kinder Morgan investors.

Kinder Morgan Canada estimates the pipeline deal is worth about $12 per restricted voting share, after capital gains tax - about three-quarters of its total share price. That claim is contested by the government of British Columbia and increasingly militant environmental and Indigenous protestors.

"We view the announcement as negative for entities considering large resource-focused capital investments in Canada such as LNG, pipelines or oilsands projects, given the inability for the rule of law and regulatory approvals to allow projects to move forward", GMP Securities analysts led by Robert Fitzmartyn said in a note to clients.

Notley said the government has had a number of experts go through the books over the past six weeks to confirm the venture will actually pay off for Albertans.

His support for the pipeline came with the proviso that it be part of an overall framework that included putting a price on carbon. Instead, it will sell the controversy-plagued project to Canada. The three groups, as well as Burnaby Residents Opposing Kinder Morgan Expansion, have been regularly demonstrating in different ways at Trans Mountain's two Burnaby facilities over the last few months.

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

"It doesn't matter if it's the Canadian government or profit-making organization, we can directly, physically stop it".

"I believe the Liberals would like people to believe (buying) was the only way to get the pipeline built but I think more and more Canadians are realizing that the fact that it's being nationalized is a result of other things that could have been avoided if this government had made different decisions", Scheer said.

Share