Horgan says takeover of Trans Mountain does not reduce risk of spill

Canada to buy Kinder's Trans Mountain pipeline for $3.5 billion
Federal government will purchase Trans Mountain pipeline for $4.5B
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01 June, 2018

The original Trans Mountain pipeline, from Alberta to Burnaby, B.C., on the Pacific Coast, has been in place since 1953.

Pipeline capacity is expanded via the construction of a 160-kilometre pipeline loop.

The spill comes less than a week before the company's self-imposed deadline to make a final decision on the Trans Mountain expansion. Almost 10,000 barrels of oil are released. The expansion would almost triple capacity to 890,000 BPD from Alberta's oil sands.

It's all because of Ottawa's unwavering support of the controversial Trans Mountain pipeline. Construction is proposed to begin in 2017, with the aim of having oil flow through the expansion by December 2019.

"Only Liberals would dump $4.5 billion on a 65-year-old pipeline and call that an energy strategy". Most of the charges are later dropped.

"If a company, or a community, were to sue in the case where they would have otherwise sued Kinder Morgan?"

Tim McMillan, president of the Canadian Association of Pipeline Producers, said what happens this week is "huge, not just for our industry or this pipeline, but I think for Canada".

Your editorial highlights the political risks in the Justin Trudeau government's decision to buy the Kinder Morgan pipeline, but there is also a major economic risk involved.

A claim in the federal Court of Appeal alleges there hasn't been adequate consultation with First Nations.

Among other things, the Trans Mountain expansion has sparked demonstrations at which people have been arrested.

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"We have demonstrated that despite the actions of one province trying to block this pipeline, the project is in the national interest and the jobs that will be assured and defended in this project are in an integral part of our plan to fight climate change and grow the economy for future generations", Trudeau said.

Oil tanks stand near the Trans Mountain pipeline expansion site in Burnaby, British Columbia, in April.

"Although the federal government's commitment is a step forward, this project was always economically viable for private-sector investment based on the long-term returns it would have for Canada".

Kinder Morgan Canada Ltd (TSE:KML)'s share price reached a new 52-week high during mid-day trading on Tuesday.

May 29, 2017: The B.C. NDP and Greens agree to form a coalition to topple the Liberal party, which won a minority government in an election earlier in the month. Irving Oil officials were unavailable for comment Tuesday. It's actually better for Kinder Morgan than it is for Canada.

June 29, 2017: The B.C. Liberals lose a no-confidence vote, clearing the way for NDP Leader John Horgan to become premier. (Subject to 15 legal challenges, but it'll be fine). "It kind of appeared that Kinder Morgan might not have thought this was such a good deal for a variety of reasons and those same concerns that Kinder Morgan had have not gone away", Stetski said.

January 17, 2018: Kinder Morgan Canada warns the Trans Mountain expansion project could be a year behind schedule.

If Canada takes on the project, Export Development Canada would finance it through a newly established Crown corporation - an approach officials say would help to defray B.C.'s threats of delay.

Outrage over the federal government's announcement about buying the Trans Mountain pipeline to ensure it gets built could fuel unprecedented protests, says a prominent environmentalist who was at the forefront of British Columbia's so-called War in the Woods in the 1990s.


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