Canada to Buy Kinder's Trans Mountain Pipeline for $3.5 Billion

Canada to Buy Kinder's Trans Mountain Pipeline for $3.5 Billion

In an act of "immense moral cowardice" that once again betrays his expressed commitment to helping confront the global climate crisis, Canadian Prime Minister Justin Trudeau announced on Tuesday that his government will purchase Kinder Morgan's "climate-destroying" Trans Mountain pipeline for $4.5 billion.

Finance Minister Bill Morneau said the government would acquire the troubled pipeline expansion project on Tuesday.

Kinder Morgan last month gave Ottawa an ultimatum: Chairman Steve Kean said the company would suspend all work on the expansion project entirely if the legal issues surrounding it can not be resolved by May 31, adding that it would not continue risking shareholder funds on the project unless the clouds over it clear.

Morneau said there'd be no fiscal impact of the plan - suggesting he doesn't expect to make or lose money on the deal.

John Horgan, British Columbia's premier, has asked a court to determine whether the province has jurisdiction over the pipeline, vowing to block the expansion if the court says yes.

Canada has announced it will purchase the Trans Mountain pipeline from developer Kinder Morgan to ensure it is completed. The expansion had been estimated at $7.4 billion.

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"Today's agreement will help advance Canada as an energy leader, as a place where good projects get built".

The pipeline plan has already started a war of words, litigation and legislation between the two provinces, even though, for the first time in Canadian history, both are governed by the New Democratic Party, the most left-leaning party in Canada's political mainstream.

The options were presented during an early-morning cabinet meeting before ministers made a call on how to proceed.

"The Indigenous-led, people-powered movement that led Kinder Morgan to abandon ship on this project is stronger than ever and will not back down". The company has a market value of $5.8 billion.

The sides had been in talks since the company set a May 31 deadline for the government to give certainty in the face of opposition from British Columbia, which is concerned about increased tanker traffic and possible oil spills along the Pacific coast. The 980-kilometre (600-mile) expansion is seen by the oil industry as a crucial link to Asian markets, allowing producers to diversify away from the US, which takes the vast majority of Canadian oil exports.

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