"A genuine sense of optimism": Horgan talks pipeline in Ottawa

"A genuine sense of optimism": Horgan talks pipeline in Ottawa

The cabinet decided the project, which will build a new pipeline that runs parallel to an existing one but can carry twice as much, was in the national interest. "We will not have the discussions in public, but this project will go ahead".

Long-standing tensions over the pipeline meant Liberals in British Columbia were already nervous about softening support before Kinder Morgan Canada's ultimatum, said a Liberal party official.

The coming legislation will "clear up any uncertainty", said CAPP president Tim McMillan, adding both the financial commitment and legislative action are important.

Trudeau cited investor confidence as one reason to help Kinder Morgan Canada, part of Kinder Morgan Inc, which plans to nearly triple the capacity of its Trans Mountain line from Alberta to the Pacific province of British Columbia.

The two premiers met the prime minister, who interrupted a 10-day trip overseas to be in Ottawa, in a bid to settle the dispute.

Horgan said he'd received assurances from Trudeau that he would not "punish" British Columbians over their government's objections, meaning Ottawa isn't going to be withholding federal funds from B.C.in an effort to get the Horgan government on side.

"Ideally, we wouldn't be in this situation right now", Trudeau said.

Speaking before the meeting, a federal government source said past examples of help included a bailout of the auto industry in 2009, federal loan guarantees for a hydro-electric project and Ottawa's investment in an offshore energy project. In January, the province considered halting any shipments of bitumen from Alberta until it could study the effects of heavy oil spills in vital waterways.

The legislation is expected to reassert, in addition to the Constitution, Ottawa's authority over pipelines.

Notley said Alberta and Ottawa will work together to "eliminate" investor risk, saying progress is being made to ensure the pipeline will go forward. Ottawa could buttress that support by enacting emergency legislation that would force the project to move ahead.

He declined to give details on exactly what the ruling Liberals had in mind to end an impasse that is prompting investor unease and could threaten his political future.

"The federal government can't buy off the opposition to this failing pipeline. the resistance continues to grow", said Mike Hudema of Greenpeace Canada. "I do believe we have a mandate to defend the coast", provincial Premier John Horgan told reporters on Friday. But the hit to the economy if the pipeline isn't built could also have devastating effects at the ballot box.

The lack of pipeline capacity means Canadian crude trades at a discount to the US oil benchmark.

The Trans Mountain pipeline expansion by the Canadian division of Texas-based Kinder Morgan would dramatically increase the number of oil tankers traveling the shared waters between Canada and Washington state. Analysts at Scotiabank estimated in a recent report that discounts for Canadian crude would cost Canada $15.6 billion in 2018 in forgone revenues.

Two of the three political leaders with the most at stake at the NAFTA table huddled Friday behind closed doors, their most senior trade lieutenants alongside, in hopes of unlocking a mutually beneficial solution to the cross-border conundrum posed by U.S. President Donald Trump.