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

Construction moving ahead on Sylvan Lake wastewater line to Red Deer

The regional wastewater line is expected to be operational by spring 2019

Sylvan Lake’s Our Lady of Assumption looking to the future

The Catholic church is in the early stages of planning for a new church building

Sylvan Lake senior girls Lakers wash over Falcons

The H.J. Cody senior girls Lakers won the recent volleyball game against St. Joe’s 3 sets to zero

Ponoka County fire crews handle second baler fire in 12 hours

Fire crews handled a baler fire just west of Gull Lake

WATCH: Canadian Finals Rodeo only two weeks away

Mayor calls CFR an opportunity to showcase Red Deer

Singer k.d. lang receives Alberta’s highest honour

Celebrated singer-songwriter k.d. lang received the Alberta Order of Excellence in Edmonton

One of Taiwan’s fastest trains derails, killing at least 18

The train was carrying more than 360 people

Scheer marks one-year countdown to federal election with campaign-style speech

Conservative Leader insists that it will be Justin Trudeau who ‘makes it personal’

Canada Post union announces rotating strikes in four Canadian cities

Mail will still be delivered but it will be delayed

Canada condemns killing of journalist in Saudi Arabia consulate in Turkey

The Saudi government claimed Jamal Khashoggi was killed in a ‘fistfight’

One year to election: Trudeau Liberals gear up for tussles on climate, premiers

Analysts say that the Liberals have reason to be ‘fairly confident’

Payette invites critics to ‘come and spend a few days’ with her

Governor General Julie Payette made her first official to B.C. back in March

Police say suspicious death of B.C. artist ruled a homicide

Patrick Zube Aylward’s body was found in a residence on a rural road outside of Seton Portage, west of Lillooet, B.C.

Temporary roads being built in areas affected by landslide in northern B.C.

Emergency Management BC news release says Disaster Financial Assistance is available to eligible residents of the Peace River Regional District who may have been affected by the landslides

Most Read