Ottawa's planned purchase of pipeline elicits shock, disappointment

Ottawa's planned purchase of pipeline elicits shock, disappointment

Finance Minister Bill Morneau said purchasing the pipeline was the only way to ensure that a planned expansion could proceed.

Morneau says the federal government does not plan to be a long-term owner and is in negotiations with interested investors, including Indigenous communities, pension funds and the Alberta government, which will provide funding for any unexpected costs that arise during construction.

Federal Finance Minister Bill Morneau made the announcement from Ottawa and says the deal represents a sound investment.

Morneau said more spending would be needed to complete the expansion, but gave no precise financial details, and stressed he felt the project should be returned to the private sector. He described the $4.5 billion buy-out as a "fair price for Canadians", and said the commercial agreement is a "sound investment opportunity".

The Canadian Energy Pipeline Association (CEPA) is pleased that the Trans Mountain Expansion Project (TMEP) will be constructed.

According to the government, the lack of access to tidewater cost provincial oil producers an estimated $2.6 billion and cost the province an estimated $210 million in taxes, royalties and other revenue in 2017.

The pipeline connects oil sands facilities near Edmonton, Alberta, to tanks in Burnaby, near Vancouver on Canada's west coast. Morneau said cabinet approved the move, which now is before the company's shareholders.

"We are pleased to have worked with the federal government to ensure construction resumes, certainty is increased and Albertans and all Canadians enjoy the many benefits of having the project go forward", Notley said in a statement.

No end in sight as fuel price surges for 13th day
Further, in Kolkata, petrol price, now inching towards a four year high, was sold at Rs 80.61, against 80.47 per litre on Friday. If this was the case, diesel prices could further reduce by Rs 3.75 a litre and petrol prices by Rs 5.75 per litre, it said.

With files from the Canadian Press. "We won't stop until the job is done!"

Ottawa has the constitutional authority to build interprovincial projects like pipelines, but B.C. Premier John Horgan has gone to court to get a judge to weigh in on whether B.C.'s jurisdiction for the environment would allow him to regulate what flows through the pipeline.

Alberta Premier Rachel Notley cheered the news on Twitter. "I think that's been reinforced by the fact that Kinder Morgan was able to build up through different open seasons to a high level of commitment (from shippers)", he said.

The project will duplicate an existing 1,150km pipeline, allowing it to ship up to 890,000 barrels of oil a day from landlocked Alberta to the Pacific coast of neighbouring British Columbia, in western Canada, for export overseas. But over the past 30 years, the Canadian government has launched a major privatization effort, selling Air Canada, Canadian National Railway and Petro-Canada.

The pipeline has become a flash point for a wider debate in Canada over the environmental impact of tapping Alberta's oil sands, which critics view as a particularly polluting energy source.

Conservative Leader Andrew Scheer is accusing Justin Trudeau of "trying to buy his way out of a problem" after the government announced a deal to buy the Trans Mountain pipeline assets from Kinder Morgan for $4.5 billion.

That said, if it takes federal ownership to construct a project that Kinder Morgan was unable to do, that may be sign of a broader failure in Canada - not a win.

Related News:



Most liked

Watch Tropical Storm Alberto Make Landfall
Florida, Alabama, and MS have all declared states of emergency, with rainfall in some areas expected to be over a dozen inches. Alberto was moving slowly up the Gulf coast, traveling at 8 miles per hour , up from 6 miles per hour at the 8 a.m. advisory.

Liverpool Sign £44m Fabinho From AS Monaco
The clubs agreed a transfer fee worth up to €50 million (£ 44m ), a source told ESPN FC. But the real significance of this signing is that it looks a major coup for the club.

Transfer Rumour: Manchester United close in on signing Shakhtar Donetsk midfielder Fred
For how much? I can not say so now. "They are two great coaches from Manchester, as well as our national head coach", Fred added. The Ukrainian club wanted £50m for Fred and were keen to get United involved in a bidding war to drive up the price even higher.

Scott Hogan should be sold by Aston Villa this summer
I got a feeling that they wouldn't score and it would be our year. "I am really happy here", Mitrovic told Sky Sports. We'll dust ourselves down, accept defeat, and yes it's going to be hard , but we've done it this year.

Residents capture Maryland floods surging through Baltimore region
One sight during the flood: a handmade, white flag hung from an upper story of a Main Street building bearing the letters SOS. The Patapsco River, located southeast of Ellicott City, experienced a 17-foot-climb in water levels over those two hours.

Warriors win Game 7 in Houston; face LeBron and Cavs on Thursday
Finals action starts later this week when the Warriors host Game 1 on Thursday and Game 2 on Sunday. Tristan Thompson averaged eight rebounds per game over the series.

Jamie Carragher's post-match gesture to Loris Karius was incredibly moving
Manchester United have made a £96m offer that could make Lazio midfielder Sergej Milinkovic-Savic their record signing. They also reported that should Bale return to the Premier League, his other main option will be Chelsea .

NBA Record futility dooms Houston Rockets in Game 7
Golden State will host the Cleveland Cavaliers in the 2018 NBA Finals with Game 1 set for Thursday night at 9:00 p.m. The Warriors have won two of the last three Finals matchups, with Cleveland capping its historic comeback in 2016.

SC anchor, photographer killed covering Alberto as storm makes landfall
On Monday evening, journalists from local newsrooms across the country joined WYFF in paying tribute to the news crew. They told Tennant to be careful with Alberto's remnant expected to bring more heavy rains and mudslides this week.

Neymar: Real Madrid Links Are Nonsense!
Speaking to ESPN's Brazilian edition, Neymar said: " I have always wanted to work with Guardiola ". Neymar said: "I'm not yet at 100 per cent".

Lebron takes Cavaliers to 4th NBA Finals in a row
Draymond Green had a team-high 10 rebounds and nine assists for Golden State , which shot 49.4 percent overall from the field. The Celtics have more playmakers and two-way players than the Cavaliers. "We need them to be the loudest they've ever been".

Moto G6, Moto G6 Play are heading to India on June 4
As per a report by XDA Developers , the Moto Z3 Play will feature an aluminium body with 2.5D curved glass at the front. The phone may also be offered in a choice of 32GB and 64GB of internal storage along with support for microSD card .

Warriors, Rockets set for Game 7 of Western Conference Finals vs Rockets
Curry and Thompson shot well the entire second half , but they ended any chance at a comeback in those first six minutes. Paul is doubtful to play tonight, but the Rockets have not ruled out the possibility as he will be a game-time decision.

Rockets' Chris Paul likely a game-time decision for Monday's Game 7
The Warriors defeated the Rockets 115-86 in Game 6 at Oracle Arena on Saturday night, forcing a Game 7 in Houston on Monday. Which is what we've come to expect - he had 46 points in 46 minutes of play in Game 6 and that's going to be needed again.

Cyclone Mekunu brings scattered showers in UAE
Socotra has a unique ecosystem and is home to rare plants, snails and reptiles that can be found nowhere else on the planet. The Emirati presence on the island began in 2015 as a relief effort after a similar cyclone hit Socotra.