Ottawa can’t find buyer for Trans Mountain pipeline by deadline

Finding another buyer for the project before the July 22 deadline was widely considered a long shot because of the project’s risks

The federal government is set to become the official owner of the Trans Mountain pipeline expansion after failing to quickly flip the project to another private-sector buyer.

Pipeline owner Kinder Morgan had been working with the government to identify another buyer before July 22.

But with that date set to pass without a deal, it was expected the pipeline company will now take Ottawa’s $4.5-billion offer to purchase the project to its shareholders.

READ MORE: Liberal government to buy Trans Mountain pipeline

Pending their approval, the sale, which includes the existing pipeline, the pumping stations and rights of way, and the Westridge marine terminal in Burnaby, B.C., will be approved sometime in August or September.

The $4.5-billion purchase price does not cover the construction costs of building the new pipeline, which previous estimates have pegged at around $7.4 billion.

Finding another buyer for the project before Sunday’s deadline was widely considered a long shot because of the project’s risks.

But the government insists it does not plan to own and operate the pipeline over the long term and is expected to continue talking to interested parties.

The government had previously indicated that there were numerous groups interested in purchasing the controversial project, including pension funds and Indigenous groups.

READ MORE: Protesters continue to defy eviction order in Burnaby

Finance Minister Bill Morneau’s spokesman, Daniel Lauzon, said Ottawa still intends to sell the pipeline, if and when a suitable partner is identified and it’s in the best interests of Canadians.

“We have no interest in being a long-term owner of a pipeline, but we will be the temporary caretaker,” Lauzon told The Canadian Press on Sunday. “We won’t rush that.”

News of the failure to find another partner by July 22 came one day after protesters opposed to the Trans Mountain expansion took to Parliament Hill in hazardous-materials suits and carrying a fake pipeline.

It was the latest in a string of such rallies by environmental and Indigenous groups, which also included the erection of a similar cardboard pipeline outside the Canadian High Commission in London in April.

Lauzon on Sunday defended the decision to purchase the pipeline, saying the project, whose aim is to get Canadian oil to Asian markets, remains in the national interest.

READ MORE: Day of Action – Hundreds show support at pipeline protests across B.C.

The Trans Mountain expansion will build a new pipeline roughly parallel to the existing, 1,150-km line that carries refined and unrefined oil products from the Edmonton area to Burnaby, B.C.

It will nearly triple the line’s capacity to 890,000 barrels a day. Trans Mountain is the only pipeline carrying Alberta crude to the West Coast and the hope is that most of the oil will end up in tankers bound for Asia.

Ottawa approved the expansion project in November 2016 and British Columbia’s then-Liberal government followed suit two months later.

But four months after that, the provincial Liberals were replaced by the NDP under John Horgan, who has a coalition of sorts with the Green party that includes an agreement to oppose the expansion in every way possible.

The federal government has said its hand was forced by Horgan, who has gone to court for judicial approval to regulate what can flow through the pipeline — a measure of opposition that made Kinder Morgan Canada, the project’s original owner, too nervous to continue.

The company halted all non-essential spending on the pipeline expansion in April pending reassurances from Ottawa that the project would come to fruition.

The federal government had said Canada would cover any cost overruns caused by B.C.’s actions, but in the end that wasn’t enough.

Following the government’s announcement that it planned to purchase the pipeline, Kinder Morgan agreed to start construction this summer as planned.

Like us on Facebook and follow us on Twitter.

Just Posted

Military Vehicle Display and Swap Meet will bring over 40 military vehicle displays

People from across Alberta will head to Red Deer for 2nd annual event

Beach Buddy Program brings reading lakeside

Beach Buddy Program is run through the Sylvan Lake Municipal Library during the summer months

Sylvan Lake swimmer heading to Pan Pacific Championships

Elizabeth Moore will be competing at the games in Fiji Aug. 23-26.

Eckville Elementary teacher advocates positive mental health for young children

Jaleesa Grzech has written a series of books to help children deal with anxiety and stress

Harvest safety reminders from Lacombe County

Lacombe County reminds producers, residents and visitors to be safe during fall harvest operations.

Canadians fear for relatives trapped amid flooding in Indian state of Kerala

More than 800,000people have been displaced by floods and landslides

Fast food chains look to capitalize on vegetarian, vegan trend with new items

Seven per cent of Canadians consider themselves vegetarians and 2.3 per cent identify as vegans

Buccaneers pillage Calgary Wolfpack 38-13 in AFL semifinal

Bucs’ looking to take down Monarchs for the AFL Championship

‘Hard on water:’ Smoke not the only long-range effect of wildfires

The project began more than 10 years ago after southern Alberta’s 2003 Lost Creek fire

Prime Minister Justin Trudeau to march in Montreal’s Pride parade

Trudeau will end the day in his home riding of Papineau

WATCH: Pioneer Days runs all weekend at Sunnybrook Farm

Red Deerians brave the smoke to celebrate Sunybrook’s biggest event

Ride to Reynolds Alberta Museum in Wetaskiwin

Smoky but awesome event celebrates everything ‘motorcycles;’ open Sat. Aug. 18 to 4 p.m.

Canadians believe in immigration but concerned about asylum seekers: study

Immigration, Refugees and Citizenship Canada paid for study to understand Canadian attitudes

Most Read