Trans Mountain Pipeline Was Too Risky for Kinder, Trudeau Says

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Canada needs projects like the expansion created to triple Trans Mountain's capacity to move crude oil and refined products from the Alberta oilsands and Edmonton refining complex to the West Coast, said Chris Bloomer, CEO of the Canadian Energy Pipeline Association.

Opponents of the pipeline are concerned about the risk of oil spills from tankers along Canada's pristine Pacific coast impacting fisheries and tourism.

The project faces fierce opposition from the government of British Columbia (BC) and environmentalists.

EDMONTON-Business leaders at the launch point for Kinder Morgan's Trans Mountain pipeline east of Edmonton, after the Canadian government announced Tuesday morning it will buy the pipeline from the oil giant.

After her arrest, May said permits issued for the twinning of the existing Trans Mountain pipeline did not respect the rights of Indigenous people. It is also confident it will prevail in a Federal Court challenge by some Indigenous communities over its approval of the pipeline, a ruling on which is due any day.

"Pipeline capacity issues are cooling oil producers' appetite for new investment and drilling was also slightly down in the last winter season", the report continued.

Under the agreement between the federal government and Kinder Morgan, the company would resume construction on the project, which was put on hold in April.

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The two western provinces have been sparring over the pipeline, a situation that Mr Morneau said can not be allowed to "fester".

Horgan, who became premier after running on a platform that included a pledge to "use every tool in the toolbox" to stop the expansion, didn't directly criticize the spending, but said, "They're making financial decisions that affect taxpayers and they'll have to be accountable for that". In order to expand deliveries from the tar sands area, there was an attempt to build the Keystone XL pipeline, but the Obama administration killed that by denying a permit for the pipeline to cross the border. But British Columbia has refused to yield.

Vancouver Mayor Gregor Robertson called the pipeline an "unacceptable risk" that threatens 10,000 jobs in the harbour.

The decision is the culmination of a months-long battle between B.C.'s NDP government, the Alberta NDP government and the federal government.

"Trudeau is gambling billions of Canadian taxpayer dollars on an oil project that will never be built", Mike Hudema, a climate and energy Campaigner at Greenpeace Canada, declared in a statement on Tuesday. He said the Trans Mountain expansion is needed for increased access to other markets.

The feds said that the investment represents a fair price for Canadians, and will allow the project to proceed under the ownership of a Crown corporation.

The federal finance minister said the government does not plan to be the long-term owner of the pipeline and expects the project to be transferred to private sector investors "at an appropriate time".