The Government of Alberta said Tuesday that it is willing to buy the Trans Mountain project outright from Kinder Morgan Canada Ltd. in order to ensure the expansion of the oil pipeline proceeds.
The government pledge came after Texas-based Kinder Morgan said that it will scrap plans to nearly triple the capacity of its Trans Mountain pipeline, which extends from Alberta’s oil fields to British Columbia’s coast, unless the legal and jurisdictional challenges ensnaring the project are resolved by May 31.
“We are considering a number of financial options to ensure that the Trans Mountain expansion is built, up to and including purchasing the pipeline outright if it was to come to that,” Alberta Premier Rachel Notley said in a written statement provided to media.
The federal government in Ottawa also pledged its support of the Trans Mountain pipeline expansion, saying that it is 100% behind the project that is expected to cost $7.4 billion.
Prime Minister Justin Trudeau’s cabinet held meetings late Tuesday to discuss its options for the controversial project, which is desperately needed by industry but fiercely opposed by the neighbouring province of British Columbia, along with certain municipalities and aboriginal groups.
The issue is a major political challenge for Prime Minister Trudeau, who approved the expansion in 2016. Critics have said he needs to be more forceful with both the West Coast province and protesters who have repeatedly blocked Kinder Morgan work sites.
“We’ve been saying for the last two days we’re prepared to look at many options, and that has not changed,” Natural Resources Minister Jim Carr told reporters in brief remarks following the cabinet meeting. “The government is 100 per cent behind this pipeline.”
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