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Canadian government to buy Kinder Morgan's Trans Mountain pipeline
|Last Edited||IndyGeorgia May 30, 2018 04:46pm|
|News Date||Tuesday, May 29, 2018 03:30:00 PM UTC0:0|
|Description||The Canadian government said on Tuesday it will buy Kinder Morgan Canada's Trans Mountain pipeline project for C$4.5 billion ($3.5 billion) but does not intend to be the long-term owner of the project, which has faced fierce environmental opposition. |
Finance Minister Bill Morneau said that buying the existing pipeline and its planned expansion project, which will carry crude oil from landlocked Alberta to a port in the Vancouver area, is the only way to ensure the halted project gets built.
The government will also offer federal loan guarantees to ensure construction continues through the 2018 season as part of the deal with the company, a unit of Houston-based Kinder Morgan.
Kinder Morgan Canada's shares jumped as much 8.5 percent in Toronto.
Morneau said the purchase of the pipeline gives the project the federal jurisdiction needed to overcome the provincial opposition of British Columbia, but he did not say how it could force the province to allow the pipeline to be built.
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