Published: Fri, June 01, 2018
Sci-tech | By Jackie Newman

Canada Is Said to Have Started Marketing Trans Mountain Sale

Canada Is Said to Have Started Marketing Trans Mountain Sale

If the federal government manages to overcome strong opposition in British Columbia and complete construction of the Trans Mountain pipeline expansion, experts say it will have an asset that will be of great interest to potential buyers.

"Cheam formed partnerships with 13 companies involved in the pipeline construction process, and during the post-construction phase", Crey said, adding some are national companies, while others are local. "The only (way) in our estimation that that can be done is through exerting our jurisdiction by purchasing the project".

Kinder Morgan effectively wiped its hands of a potentially lucrative pipeline project because the politics of this not-that-united country was putting its shareholders at risk.

Shares of Kinder Morgan Canada Ltd (TSE:KML) reached a new 52-week low during mid-day trading on Wednesday after Royal Bank of Canada lowered their price target on the stock from C$24.00 to C$18.00.

Pending their approval, the sale would be finalized sometime in August or September.

The government has said it is willing to cover the costs of budget overruns on the pipeline caused by political interference from British Columbia, but the company has not yet indicated if that will be enough to convince it to put shovels in the ground.

"From a municipal perspective, pipelines are the safest way to transport oil", the letter noted.

Morneau says the federal 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, which will provide funding for any unexpected costs that arise during construction.

The sale would include the expansion, related pipeline and terminal assets as well as the management team that was tasked with building the pipeline, the people said.

For that reason, the expansion proposal, which was OKed by the federal government in 2016, alarmed residents in the B.C.'s populous Vancouver area.

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This change of mind was no surprise after the NDP won the right to form a minority government campaigning that it would do anything within legal limits to stop the project.

March 9, 2018: B.C. Supreme Court grants interim injunction aimed at preventing anti-pipeline activists from protesting construction at two terminals in Burnaby.

Morneau said more spending would be needed to complete the expansion, but gave no precise financial details, and stressed he felt the project should be returned to the private sector. For years, it transported standard crude oil without controversy.

None of Tuesday's news appeared to do much to dissuade Horgan, however, who insisted his court challenge would proceed.

"The federal government has responded and that's their business".

British Columbia Premier John Horgan said he's anxious about the "catastrophic consequences" should there be a spill, regardless of the owner, and will continue to fight it in court.

If Kinder Morgan withdrew from the project over a lack of certainty, it would be viewed as a massive failure in federal leadership on the part of Prime Minister Trudeau given his promise the pipeline would get built.

The federal government can in theory step in and disallow any provincial laws that British Columbia might use to block the pipeline, but this provision in the Canadian constitution has not been used since the 1940s.

Alberta Premier Rachel Notley cheered the news on Twitter.

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