Canadian government plans to buy Kinder Morgan’s Trans Mountain expansion project and related infrastructure. On Tuesday, Finance Minister Bill Morneau said that Canada will purchase Trans Mountain pipeline which is “a vital project in the national interest” in a C$4.5 billion ($3.5 billion) federal investment. The government is hoping to save the troubled pipeline expansion in spite of objections from environmentalists and formidable other groups.
This pipeline would connect Alberta to a port in the Pacific province of British Columbia and allow Canadian crude to acquire large access to international markets and higher prices.
“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,” Canadian Prime Minister Justin Trudeau said.
Environmental activists, aboriginal groups, and the government of British Columbia (BC) have been expressing objections on this plan as they worried about the risks of a spill and hazards of increased petroleum tanker traffic.
In British Columbia, Premier John Horgan said, “Tens of thousands of B.C. jobs depend on pristine coastal and inland waters. Our environment generates millions in economic activity, from tourism to film and fisheries. It does not matter who owns the pipeline. What matters is defending our coast — and our lands, rivers, and streams — from the impact of a spill.”
The pipeline purchase is subject to approval by Kinder Morgan’s shareholders and expected to close in August. According to a report, Canada could be required to invest billions more to complete the project. After its finishes this expansion, the government plans to sell the pipeline.
Sarah Buscaino is a seasoned journalist with 10 years experience as a reporter and investigative journalist. While studying journalism in Toronto, Sarah got her break as an intern at CITY TV. As a contributor to Island Daily Tribune, Sara covers municipal and provincial politics.