In a stunning turn in an already unprecedented saga, Finance Minister Bill Morneau announced this morning that the federal government will buy the Trans Mountain pipeline project from Kinder Morgan for $4.5-billion, essentially nationalizing the project.
trans mountain pipeline
Trudeau government nationalizes Trans Mountain pipeline project—further proof that Canada is closed for business
Pipeline expansion project may generate $50 billion in government revenue over 20 years.
Kinder Morgan stopped all “non-essential spending” on the $7.4 billion project due to regulatory, legal and political barriers.
Canada’s energy sector employed 884,000 people in 2016.
Pipelines are 2.5 times safer than rail transport.
Cenovus recently announced it will cut production from some of its oilsand projects.
The recent move by Kinder Morgan on the Trans Mountain pipeline was a massive blow to Canada’s investment attractiveness.
Private-sector investment in factories and other structures down more than 23 per cent.
Business investment (excluding residential structures) is down nearly 20 per cent since the third quarter of 2014.