The Federal Court of Appeal has reportedly quashed Ottawa’s approval of the contentious Trans Mountain pipeline expansion.
The decision out of Vancouver Thursday morning means the National Energy Board will have to redo its review of Kinder Morgan Canada’s (TSX: KML) project.
The court said the board’s review was so flawed that the federal government could not rely on it as a basis for its decision to approve the expansion.
The court also concludes that the federal government failed to engage in meaningful consultations with First Nations before green-lighting the project.
That decision means Ottawa will have to re-consult with Indigenous groups.
Prime Minister Justin Trudeau’s government approved Trans Mountain in 2016 and was so determined to see it built that it announced plans this spring to buy the pipeline and expansion project for $4.5 billion
The expansion would have tripled the capacity of the Trans Mountain pipeline that carries oil from near Edmonton to Metro Vancouver for overseas shipping.
Kinder Morgan's stock gained 22 cents per share, or 1.3%, to $17.07.
