Alberta’s premier says the Trans Mountain pipeline expansion “has more certainty,” after the federal finance minister announced plans to buy the project Tuesday morning.
On Tuesday morning, Finance Minister Bill Morneau announced Ottawa would spend $4.5 billion to buy the pipeline expansion, and all of Kinder Morgan Canada’s core assets.
Morneau said in return, the company will move forward with its plan to twin the pipeline this summer, while the sale is finalized, which is expected to happen in August.
When the sale is finished, Canada will continue construction on its own, with plans to eventually sell it all in the future once market conditions improve.
The options were presented during an early-morning cabinet meeting before ministers made a call on how to proceed.
In a tweet, Premier Rachel Notley called the announcement “a major step forward for all Canadians.”
This is a major step forward for all Canadians.
We have met the deadline.
This project has more certainty than ever before.
We won’t stop until the job is done!
I’ll have more to say later this morning. #KeepCanadaWorking #ABleg #ABpoli #TMX
— Rachel Notley (@RachelNotley) May 29, 2018
Financing will come from Export Development Canada. The purchase includes the pipeline, pumping stations, and rights of way along the route. The expansion stretches between Edmonton and Burnaby, B.C.
The plan echoes how the federal government financed and managed shares in General Motors and Chrysler in 2009 during the financial crisis. A new Crown corporation will be created to manage the project.
The Alberta government has agreed to cover any unexpected costs that arise during construction.
More to come…
With files from The Canadian Press
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