The Alberta government has agreed to cover any unexpected costs that arise during construction. Federal loan guarantees of an undisclosed amount will ensure that construction continues throughout the 2018 season.
Horgan says the federal government's decision to take over the pipeline from Kinder Morgan doesn't change his government's position and it will proceed with its reference case to the B.C. Court of Appeal. "Now, that's why the government of Canada really felt they had to do this - in addition to the fact that there's $15 to $16 billion a year of giveaways to the United States" oil buyers, because of the discount".
Meanwhile, the rally drew hundreds of Vancouverites, all opposing the Kinder Morgan purchase.
Kinder Morgan Inc. created its Canadian subsidiary in a $1.7-billion initial public offering past year.
While the $3.5 billion Trans Mountain takeover keeps alive a project seen as critical to expanding markets for Canada's crude and improving the price oil-sands producers get paid, it also reveals how key infrastructure projects can be stymied by local opposition and regulatory hurdles.
The federal Liberal government announced Tuesday that it will spend $4.5 billion to buy Trans Mountain and all of Kinder Morgan Canada's core assets.
Finance Minister Bill Morneau says the government doesn't plan on holding on to ownership of the pipeline, and is looking to sell it to investors at some point in the future. The purchase includes the pipeline, pumping stations, and rights of way along the route.
Morneau says the federal government does not plan to be a long-term owner and is in negotiations with interested investors, including Indigenous communities, pension funds and the Alberta government.
"Make no mistake: this is an investment in Canada's future". "It seems today that with this announcement and the federal government getting involved is they recognize how important natural resource development is for all of Canada - not just for the provinces where the projects are occurring".
The pipeline plan has already started a war of words, litigation and legislation between the two provinces, even though, for the first time in Canadian history, both are governed by the New Democratic Party, the most left-leaning party in Canada's political mainstream.
On Tuesday, his government announced the pipeline to move Alberta oil to the B.C. coast for transfer onto ocean-going tankers and distribution to global markets, will be built in the worst possible way.
Moe wants Ottawa to use the full scope of its jurisdiction to get the pipeline completed.
The government was immediately slammed from all sides for its stunning move.
If B.C. Premier John Horgan and Green leader Andrew Weaver thought Trudeau might fold on this file, they have misjudged the prime minister's mettle, as well as his analysis of the electoral map. David Mivasair of the Justin Trudeau Brigade told the NOW. Here's what Science World looked like last night.
Ottawa is pressing ahead, firmly of the opinion there is no doubt about its jurisdiction.
For those opposed to the pipeline twinning, including Indigenous leaders and environmentalists, the bailout probably came as a "big surprise, if not a shock", he said. Some First Nations will stand with him but there will be significant and noteworthy absences.
Were that court challenge to be dropped, it would remove a lot of the risk that has made the project so unattractive to the private sector. He promised that this project could not go through unless it was done through a vigorous review, which he broke'. When it comes to worldwide investor confidence in this country, he says that this move is, "too little, too late". The oil continues to be shipped here by rail bed.