Nelson protestors denounce federal purchase of Trans Mountain Pipeline

Minister of Finance Bill Morneau speaks to the media in Calgary Alta. Wednesday

Minister of Finance Bill Morneau speaks to the media in Calgary Alta. Wednesday

Environmental groups and indigenous communities have long fought against any expansion of the pipeline, which they say contradicts the country's climate commitments.

Steve Kean, Kinder Morgans chairman and chief executive officer, told a conference call his company welcomed a “transaction that benefits the people of Canada, ” as well as shippers on the Trans Mountain expansion and Kinder Morgan shareholders.

"I believe that the government's idea is to make Trans Mountain the last pipeline that's built", he claimed. The expansion would be a twinning of the existing 1,150-kilometre pipeline between Strathcona County near Edmonton in Alberta and Burnaby on the Pacific Coast in British Colombia. Canada became less competitive this week, and Canadians paid for it.

Anti-pipeline protesters have made a calculated effort to blockade two Trans Mountain work sites in Burnaby, says a British Columbia Supreme Court judge who scrapped a 10-minute pre-arrest warning and expanded an injunction to include other facilities used by the company. Also, the 26 lenders that Kinder Morgan negotiated with agreed to exempt the pipeline company from penalties on loans if the project was delayed or obstructed because of political problems.

On Tuesday, the federal government announced that it will spend $4.5 billion to buy the pipeline from Kinder Morgan, after the company announced a May 31st deadline for Canada to find solutions to it's construction.

Their opposition became more hard this week after a controversial move from the federal government.

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Kinder Morgan also said it would work with the Canadian government to seek a third-party buyer for the system and expansion through 22 July.

"It's just really having a good project framework and ensuring there's ongoing monitoring, that there's a solid foundation", she said. "However, despite overall support for the project, residents are opposed to the federal government's decision to acquire the pipeline and its assets-including federal Liberal voters-leaving support for Trudeau waning as an outcome". "We will not stand down no matter who buys this ill-fated and exorbitantly priced pipeline".

National Bank Financial reiterated their sector perform rating on shares of Kinder Morgan Canada (TSE:KML) in a research report report published on Wednesday. The City has 30 days to appeal the ruling.

Critics on both the right and the left have criticized the move, the right saying the government should not be using taxpayer money, with the left saying the project is futile and flies in the face of clean energy goals. Some First Nations have legal challenges on consultation at the Federal Court of Appeal.

"Buying this leaky old pipeline is like going to a casino and gambling your children's education fund", she said. "This kind of project belongs in the private sector, and it should never have left it".

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