OTTAWA-Canada on Tuesday struck a multibillion deal with Kinder Morgan Inc.to take ownership of the Trans Mountain pipeline project in a bid to save the project.
Canada has announced it will purchase the Trans Mountain pipeline from developer Kinder Morgan to ensure it is completed.
In April, Kinder Morgan suspended non-essential spending on the project.
Later on Tuesday, many criticised the government's move, saying it raised broader environmental concerns by enabling increased development of the carbon-heavy oil sands, as well as burdened Canadian taxpayers for a project that should be paid by the private sector.
The time is not right for either company to take on a project like Trans Mountain, said Laura Lau, who helps manage C$1.5 billion in assets, including shares of TransCanada and Enbridge, at Brompton Corp.in Toronto.
Federal Finance Minister Bill Morneau said the move will only be used to ensure the capacity of the pipeline can be tripled, allowing Canada to find new export markets for its oil resources. "This is a sad day for British Columbia".
Opponents of the pipeline are concerned about the risk of oil spills from tankers along Canada's pristine Pacific coast impacting fisheries and tourism.
The $4.5-billion purchase price does not cover the construction costs of building the new pipeline, however; Morneau refused to say what that cost may be.
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Horgan told reporters in Victoria the federal government's takeover of the project changes the legal situation, but his contentious legal action isn't aimed at any specific project.
Crey wasn't completely surprised either by the bailout decision announced by Liberal government Ministers Bill Morneau and Jim Carr.
Members of the ongoing protest groups Protect the Inlet (the watch house), Camp Cloud and the Justin Trudeau Brigade all indicated they would continue to oppose the project, regardless of who owns it.
Medicine Hat-Cardston-Warner MP Glen Motz weighed into the debate over the federal governments plans to buy out the Kinder Morgan pipeline project.
According to Hudema, the movement opposing the project " will not back down" following the government's purchase.
Kamloops-South Thompson MLA Todd Stone said "bravo to Premier Horgan for taking a $7.4-million project that will create 15,000 jobs that would be built by a private proponent and now it's nationalization of a multi-billion dollar asset".
Morneau's announcement comes two days before a May 31 deadline for a resolution set by Kinder Morgan, the Texas-based company behind the proposed Trans Mountain pipeline expansion.
However, the $4.5-billion loan may not be enough to see the pipeline through.
Rankin called it a "ridiculous" amount of money to spend on an aging pipeline given other pressing issues. "We won't stop until the job is done!"
The overwhelming majority of Canada's oil exports are sold to American refiners at a discount to global benchmarks, reducing fuel prices for American consumers and income for Canadian producers. "I encourage them to continue to express their disappointment within the rule of law", he said.