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

Langley East MLA could testify in logging lawsuit

Rich Coleman has been put on the witness list for a lawsuit against TimberWest.

WATCH: Kwantlen artist paints and installs Indigenous mural in Fort Langley

First Nations painter Brandon Gabriel created a piece of art for Cranberries Naturally.

Day 3 brings fourth win for the Langley-based Team BC

Tyler Tardi and squad plays two games Tuesday at the junior curling nationals in Saskatchewan.

New Langley resident takes to the stage in upcoming musical

Leah Newson is performing in Annie: The Musical in Burnaby starting Feb. 1.

Cash-for-signs policy pondered by Langley Township

A deposit could be required to put up election signs in 2022.

WATCH: Kwantlen artist paints and installs Indigenous mural in Fort Langley

First Nations painter Brandon Gabriel created a piece of art for Cranberries Naturally.

B.C. man fined $10,000 after leaving moose to suffer before death

Surrey man was convicted last week on three Wildlife Act charges

‘Blue Monday’ isn’t real, but depression can be

CMHA encourages people to prioritize their mental health

South Surrey mother didn’t have the intent to kill her daughter: defence

Closing submissions in case of Lisa Batstone underway

Anti-pipeline group wants NEB to consider impact of emissions, climate change

Stand.earth filed NEB motion asking to apply same standard to the project as it did with Energy East pipeline

Parole granted for drunk driver who killed B.C. RCMP officer

Kenneth Jacob Fenton will be able to attend alcohol abuse treatment, nearly three years after crash that killed Const. Sarah Beckett

B.C. man charged in 2014 snake venom death of toddler

Henry Thomas was taking care of the North Vancouver girl the day before she died

B.C.’s largest public-sector union wants inquiry into money laundering, drugs

Union officials say Premier John Horgan and Attorney General David Eby have not ruled out the possibility of a public inquiry

Aldergrove soccer tournament set for March 30-31

2019 edition of the Barry Bauder Memorial Soccer Tournament taking registrations

Most Read