Canada purchases Trans Mountain pipeline project for $4.5B


"The deal announced today puts people to work building the pipeline right away and it will help us build up the things that matter to working families, such as our schools and our hospitals".

Until now, Trudeau's government has used a soft tone to try to convince British Columbia to abandon its opposition to the pipeline, hoping not to alienate voters in the province before next year's general election.

Horgan was adamant that his government should not shoulder any blame for the cost taxpayers may or may not incur.

Scheer said Prime Minister Justin Trudeau has failed to provide certainty and "done nothing" to establish federal jurisdiction. "The only (way) in our estimation that that can be done is through exerting our jurisdiction by purchasing the project".

Finance Minister Bill Morneau said the decision was exceptional and that the rule of law needs to be seen as a business advantage to investing in Canada.

Morneau said in return, the company will move forward with its plan to twin the pipeline this summer, while the sale is finalized, which is expected to happen in August.

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.

The government does not intend to be the long-term owner of the pipeline, however, and has already begun speaking with interested parties about transferring ownership later on.

"It's a mess out there", said a Calgary industry source not authorized to speak publicly. "And when you have that question, I want you to think back to yesterday and that's the example of how strongly we'll support the sector".

650 CKOM analyst Paul Martin said he's concerned now there's no longer a deadline for determining the expansion.

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Canada's oil sector has been stung in the past year as foreign energy companies retreated amid concerns about the environmental toll, high production costs and a risky regulatory regime.

In a presentation to investors dated July 2017, Kinder Morgan Canada said it had an enterprise value of $5.9 billion, with 2016 adjusted EBITDA of $395 million. However, just recently they chose to put hiring to a halt.

Watch below: Some videos from Global News' stories about the Trans Mountain pipeline.

What kind of a stupid nation buys a leaky pipeline from a bunch of good old Texas boys without doing any due diligence?

Now the Canadian government is stepping in to make sure the pipeline is completed over the objections of environmentalists, especially those in the Vancouver area who are anxious about increased shipping traffic and the possibility of spills along the coast.

"Ultimately Kinder Morgan finds it a poor investment for them and their shareholders, it's a poor investment for our taxpayer dollars too", he said.

Trans Mountain acknowledged in the agreement that none of the terms would prevent the province from changing direction on the project.

The issue has divided two Canadian provinces, pitting Alberta's government against leaders in British Columbia.

Canada is buying a pipeline expansion project rather than risk it being derailed by protests and delays. The contribution will convert into equity in the pipeline.

Speaking to reporters in Vancouver, Premier John Horgan said the federal government's offer to take over the pipeline from Kinder Morgan doesn't change his government's position and it will proceed with its reference case to the B.C. Court of Appeal.