Federal government to buy Trans Mountain pipeline

The federal Liberal government has announced plans to purchase the Trans Mountain pipeline and all of Kinder Morgan Canada’s core assets for $4.5 billion.

Finance Minister Bill Morneau made the announcement Tuesday morning, after cabinet ministers signed off during an early morning meeting in Ottawa.

“We believe this is the best way to protect thousands of well-paying jobs and the safest and most effective way to get our resources to world markets,” said Morneau.

“Make no mistake: this is an investment in Canada’s future.”

The move means Kinder Morgan, the company behind the project, will go ahead with its original plan to twin the pipeline this summer while the sale is finalized.

Once it’s finalized, Canada will continue the construction on its own.

The pipeline expansion would nearly triple its capacity to an estimated 890,000 barrels a day and would increase tanker traffic off B.C.’s coast.

According to Morneau, the 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.

Prime Minister Justin Trudeau has long insisted the project is in Canada’s national interest and is a pivotal part of the country’s economic future.