Trans Mountain pipeline sale criticized by MP Warkentin

Trans Mountain pipeline sale criticized by MP Warkentin

Trans Mountain pipeline sale criticized by MP Warkentin

Ottawa is playing favourites by investing billions of dollars into the Trans Mountain pipeline in Western Canada even though it did nothing to help the now-defunct Energy East project here, says Saint John Mayor Don Darling.

Alberta's premier says the Trans Mountain pipeline expansion "has more certainty", after the federal finance minister announced plans to buy the project Tuesday morning.

"My experience is that people are motivated by betrayal, they're motivated by a lack of fairness, they're motivated by a sense of shared common goal and outrage".

Calgary-based pollster Janet Brown said the premier should be careful not to be seen celebrating prematurely on a file - and a provincial economy - that has been bedevilled by swings and setbacks.

While he isn't happy about the federal government's decision to buy the pipeline project, Milobar said "it's understandable why government wants it to proceed and it will be good if the government gets it across the finish line". A lack of capacity in pipelines or in rail cars to ship oil produced in Alberta is also hurting Canada's energy sector. We have the federal government spending $4.5B to buy a 60-year-old pipeline. It was a remote location that took most people five to seven hours to get through.

Sumas First Nation Chief Dalton Silver said his community remains fiercely opposed to the existing tank farm in their territory, let alone the proposed expansion.

Multiple court cases are still pending against it, including the constitutional reference question from the B.C. government.

"We view the announcement as negative for entities considering large resource-focused capital investments in Canada such as LNG, pipelines or oilsands projects, given the inability for the rule of law and regulatory approvals to allow projects to move forward", GMP Securities analysts led by Robert Fitzmartyn said in a note to clients.

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"The protesters and the opposition, and the civil disobedience is probably going to increase", Khelsilem said.

"We need to see a detailed plan laid out", Lindbjerg said.

CIBC slashed its 12-month price target to $17 from $22 because of its lower expectations of future growth in revenue and dividends for Kinder Morgan shareholders. Pipeline opponents are also calling out Trudeau for abandoning federal commitments to take action on climate change and respect the rights of indigenous nations.

"This was clearly not our first, best alternative", he said, adding later: "I know that doing this will make a statement to all of you in the room and a statement across the country that the federal government is willing to step up". It's an enormous political and financial risk, and how it turns out may well determine whether his government is considered a success.

Yesterday, he charged that the federal government has created "an unfair and unlevel playing field" for energy projects in Canada.

But even if the Keystone XL pipeline is built, Canada is still selling 99% of its oil to refineries in the USA and that narrow market means they now get far less per barrel than they would if they had access to an alternative market.

"Keep in mind Kinder Morgan wanted to build this, with zero taxpayer dollars, but they were getting so much resistance and the government was doing nothing to try to get the provinces on board or to introduce legislation to move things ahead", said Gladu. Any money put toward construction would be converted into an equity stake in the federal project, she said.

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