Canada willing to cover any Kinder losses on pipeline expansion

  • Canada willing to cover any Kinder losses on pipeline expansion

Canada willing to cover any Kinder losses on pipeline expansion

It's unclear who those potential private investors might be, nor is it clear how another party would be able to take over the expansion project given Kinder Morgan now owns the existing Trans Mountain Pipeline.

Still more protests were planned in Calgary and Vancouver on Wednesday, including at Kinder Morgan's Pacific Coast tank farm that will see indigenous activists don hazmat suits to highlight the potential health risks from fumes, for example, that area residents could face if a wildfire or natural disaster struck.

"So I can tell you that my government is doing and will continue to do everything necessary to defend federal jurisdiction and mostly to get this pipeline built".

It's also not yet clear if that would require legislation.

Morneau's talks with Kinder Morgan had their genesis a month ago, when Trudeau promised to deploy both financial and legislative tools to ensure the disputed expansion is able to proceed. "It's too early to speculate on the mechanics of any future agreement", said Morneau's office.

It was announced late Tuesday night as Morneau consulted with senior officials in the Alberta government.

Country Trust Bank boosted its stake in Kinder Morgan (NYSE:KMI) by 19.8% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission.

But British Columbia's new social democratic government recently joined environmental activists' fight against the pipeline, provoking an Alberta boycott of its wines and threats to devastate the British Columbia economy by restricting oil and gas supplies to its neighbor.

"While discussions are ongoing, we are not yet in alignment and will not negotiate in public", Kean said.

"We appreciate [Morneau's] recognition that a private company 'cannot resolve differences between governments'".

Morneau will explain how the proposed steps will help ease Kinder Morgan's concerns, while also ensuring that Canadians aren't exposed to excessive financial risk, the official said.

"This is a failure to lead".

"If Kinder Morgan is not interested in building the project, we think plenty of investors would be interested in taking on this project, especially knowing that the federal government believes it is in the best interest of Canadians and is willing to provide indemnity to make sure it gets built", Morneau said at a hastily arranged press conference in Ottawa.

Federal NDP Leader Jagmeet Singh accused the Liberals of wiring a blank cheque "while dumping all the risks on Canadians".

Pipeline operations added $11.5 billion to Canada's gross domestic product in 2015, sustaining 34,000 full-time jobs.

Last month Kinder Morgan stopped all non-essential spending on its $7.4-billion project after a months-long standoff between the British Columbia and Alberta governments.

Liam Shaw works in the oil and gas industry and says the pipeline delays are hurting workers and their families.

Morneau placed the bulk of blame for the delay at the feet of British Columbia Premier John Horgan calling his opposition "politically motivated". "These are challenges that frankly put the livelihood of thousands of Canadians and their families at risk".

"We're here today to say this is provincially and federally approved". Approval came in consultation with the previous B.C. Liberal government, which gave its consent to the project after its own conditions were met.

Speaking to reporters following an event in Vancouver, Premier Horgan fired back over Morneau's characterization of the dispute.

"On this point I think we disagree quite fundamentally".

Ottawa's proposal, Assembly of First Nations Chief Perry Bellegarde told iPolitics, won't dissuade Indigenous concerns about the project.

The finance minister noted that any federal support for the project must be "sound and fair and beneficial" to Canadians.