The Trudeau government is buying the Trans Mountain expansion project from Kinder Morgan at a cost of $4.5-billion, saying this extraordinary move is necessary to ensure this addition of oil pipeline capacity gets built.
The “agreement will help advance Canada as an energy leader, as a place where good projects get built,” Natural Resources Minister Jim Carr said.
The purchase from owner Kinder Morgan will ensure work can resume on the Trans Mountain expansion.
“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,” Finance Minister Bill Morneau said.
This move comes as the pipeline project faces fierce opposition including the province of British Columbia and environmental groups. It amounts to a nationalization of the critical pipeline project.