Home » Money

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

29 May, 2018, 22:34 | Author: Lawrence Cooper
  • Green party leader Elizabeth may attends pipeline protest in Montreal. Saturday Oct. 10 2015

Prime Minister Justin Trudeau's government plans to spend $4.5 billion Canadian (US$3.4 billion) to purchase Kinder Morgan's Trans Mountain pipeline. Conservative Party Leader Andrew Scheer said Kinder Morgan wasn't asking for money but for "certainty" on how to build the pipeline.

The Canadian pipeline industry welcomed news Tuesday that the Trans Mountain expansion pipeline is more likely to be built, but expressed grave misgivings over the federal government's decision to buy both the expansion and the existing line in order to achieve that goal. "This is an investment in Canada's future", Morneau said.

He says Kinder Morgan will proceed with its plan to twin the pipeline this summer while the sale is completed.

Morneau also indicated that the federal government didn't want to own the Trans Mountain system long-term and would work with Kinder Morgan to identify a third-party buyer.

The pipeline connects oil sands facilities near Edmonton, Alberta, to tanks in Burnaby, near Vancouver on Canada's west coast.

Horgan says the fact the pipeline is about to be owned by a federal Crown corporation doesn't affect the case.

"We've always reckoned that the Trans Mountain expansion was logical in terms of, if you build the pipeline, the volumes will flow through it".

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.

PUBG takes legal action against Fortnite dev Epic Games for copyright infringement
Meanwhile, " Fortnite " is now the largest free-to-play console game of all time, and it's dominating PC and mobile as well. Without getting too deep into the weeds, PUBG is the brainchild of Brendan " PlayerUnknown " Greene.

LeBron James prepares for most challenging Game 7 National Basketball Association
Cleveland became the first team to win on the road in the series and the first to beat the Celtics at home in the postseason. Both players have one flaw that tends to drive fans insane , that is also central to why they're such good players.

Things we learned from Fulham's win over Aston Villa
But Bruce is ready to go again next season. "In my eyes, over the past two seasons, we've been the best team in this league". Villa were unable to break down a Fulham side which played the last 20 minutes with ten men after Denis Odoi's sending off.

"It does change it from a federally approved project to a federally undertaken project".

Canada needs projects like the expansion created to triple Trans Mountain's capacity to move crude oil and refined products from the Alberta oilsands and Edmonton refining complex to the West Coast, said Chris Bloomer, CEO of the Canadian Energy Pipeline Association.

"The message being sent is that to get anything built, the federal government has to nationalize it", Scheer said.

"Our government believes that the commercial agreement we have reached with Kinder Morgan is the best way to protect thousands of good, well-paying jobs while delivering a solid return on investment for Canadians".

Analysts have said China is eager to get access to Canada's oil, but largely gave up hope that a pipeline to the Pacific coast would be built. "Worst of all, the cost and risk of a $7 billion project that was going to be willingly financed entirely by a private company will now be unnecessarily transferred onto the backs of Canadian taxpayers". It is also confident it will prevail in a Federal Court of Appeal challenge by some Indigenous communities over its approval of the pipeline, a ruling on which is due any day.

Financing for this purchase will come from Export Development Canada. "We've agreed to a fair price for our shareholders and found a way forward for this national interest project".

Canada loses $15 billion every year on the sale of oil because the USA remains its only export customer, resulting in a lower price, Trudeau argues.

The project faces fierce opposition from the government of British Columbia (BC) and environmentalists.

Recommended:



Popular

Parkland parents decry game that simulates school shootings
Active Shooter is being derided by gamers on social media and the developer is seemingly embracing controversy to boost sales. The game is receiving an outcry after a student shot and killed 10 people in Santa Fe, Texas .

FBI urges people to reboot their home and office routers
The company listed routers from Linksys, MikroTik, Netgear, and TP-Link, and QNAP storage systems, as targets of VPNFilter. The FBI also advised owners to disable remote management settings on devices and make sure their passwords are secure.

Moon Jae-in calls for more impromptu talks with North Korea
The Washington Post reported Sunday that the meeting was aimed at salvaging the June 12 summit, which Trump canceled on Thursday. More meetings will take place today. "So, basically it's up to the Trump Administration to use the elements of American power".

Uh Oh, Things Might Not Be Looking Great for Solo
As it turns out, an intended franchise with the title Solo may have to be just that-a solo , one-and-done affair. Abrams will return to the director's chair, following Rian Johnson's work on The Last Jedi previous year .

After Ireland says Yes to abortion, what next for Northern Ireland?
An initiative to repeal Ireland's abortion law was overwhelmingly successful, results released Saturday indicate. Once passed, women in Ireland will be able to obtain first-trimester abortions in Irish hospitals.

SKorean President Moon Jae-in meets NKorea's Kim Jong Un
He said North Korea regretted Trump's decision to cancel and remained open to resolving issues "regardless of ways, at any time". It was read by Secretary of State Mike Pompeo - who met Kim earlier this month - to the Senate moments after Trump published it.

Judge orders 30-year-old man to leave parents’ home
No specified deadline was stated in court, but the lawyer mentioned that it would include reasonable time for Rotondo to vacate. A U.S. judge has ordered a 30-year-old man to move out of his parents' house after they went to court to have him ejected.

Cuffed Harvey Weinstein taken to New York courthouse on rape charge
Asked about the raft of other allegations against Weinstein, Brafman said the case was a question of crime, not bad behaviour. She was among the first women to speak out about the producer and has confirmed to The New Yorker to be pressing charges.

6 people sickened by contaminated lettuce in Ohio — CDC
California, however, has the highest number of E. coli infection cases at 39 victims, followed by Pennsylvania at 21 victims. The strain of E. coli present in the contaminated lettuce can cause vomiting, diarrhea and other symptoms.

Tesla confirms Utah driver engaged autopilot functions before slamming into firetruck
Tesla's Traffic-Aware Cruise Control system is programmed to ignore stationary roadside objects when traveling at highway speed. Now the NHTSA is also announcing that it will investigate the accident, but only for data gathering as a "special crash".