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Kinder Morgan Pipeline

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  • Kinder Morgan Pipeline

    BREAKING NEWS: The federal Liberal government plans to spend $4.5 billion to buy the Trans Mountain pipeline and all of Kinder Morgan Canada's core assets. https://t.co/qXhM2kfNRp

    The federal Liberal government plans to spend $4.5 billion to buy the Trans Mountain pipeline and all of Kinder Morgan Canada’s core assets.

    Finance Minister Bill Morneau says that in return, Kinder Morgan will go ahead with its original plan to twin the pipeline this summer while the sale is finalized, which likely won’t happen until August.

    Morneau says once the sale is complete, Canada will continue the construction on its own, with a view to eventually selling the whole thing down the road, once market conditions would allow it to get the best price.

    Morneau presented the options during an early-morning cabinet meeting today before ministers made a decision on how to proceed.

    Export Development Canada will finance the purchase, which includes the pipeline, pumping stations and rights of way along the route between Edmonton and Vancouver, as well as the marine terminal in Burnaby, B.C., where oil is loaded onto tankers for export.

    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.

    More Coming

  • #2
    They said they would take a financial position in ti, but I didn't predict them buying the whole shmeer. Wow.

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    • #3
      So... Is Canada buying it so they can speed up the process of having it completed, then quickly sell it back to the "most complete bidder" (Kinder Morgan) in a few years? This should be interesting. I'm neither for, nor against at this point?

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      • #4
        So how does this get the whole BC tree hugger block resolves? Or is this spending money to try to appease everyone?
        Rider QB Scrappin in Full Swing

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        • #5
          As a Gov't owned project it will get built, no question. This is a game changer, just not the one I would prefer. Odd but the Feds stand to make quite a bit of money off this, as does Alberta as they are apparently taking a stake as well.

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          • #6
            It's appalling that the only way we can get a pipeline to tidewater in this country is by nationalizing it, nationalizing a good private sector company, and it isn't because of a lack of willing investors.

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            • #7
              Originally posted by Bigsexydawg View Post
              So how does this get the whole BC tree hugger block resolves? Or is this spending money to try to appease everyone?
              Partly your second point, but mainly, as both the owner and regulator, the government should be able to get this done far more quickly.

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              • #8
                Originally posted by kcountry View Post
                It's appalling that the only way we can get a pipeline to tidewater in this country is by nationalizing it, nationalizing a good private sector company, and it isn't because of a lack of willing investors.
                They aren't nationalizing the whole company. It's just this particular pipeline. I agree the whole thing is pretty bad. If something is in the national interest it needs to get done and these little fiefdoms shouldn't be able to hold the country hostage.

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                • #9
                  Originally posted by Bigsexydawg View Post
                  So how does this get the whole BC tree hugger block resolves? Or is this spending money to try to appease everyone?
                  There may be some RCMP/eco battles ahead.
                  Don't do it

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                  • #10
                    This country has a serious regulatory problem when they have to resort to this. I don't care what the political stripe is. If the Conservatives did this I wouldn't be happy, either. The project was fully approved. Uphold the law and Kinder Morgan would have completed it on their own, and on their own dime.

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                    • #11


                      After several years of delays and uncertainty surrounding the Trans Mountain expansion project, the chief executive of Kinder Morgan was upbeat Tuesday morning as he discussed the $4.5-billion sale of the proposed pipeline to the Canadian government.

                      "We think this is a great day not only for our company but for Canada, and we're happy to be participating in it," CEO Steve Kean said on a conference call with analysts and investors after FInance Minister Bill Morneau's announcement Tuesday.

                      The Liberal government will purchase the existing Trans Mountain pipeline and the proposed expansion. Construction is set to begin this summer and Ottawa will start picking up the tab for those costs.

                      Kinder Morgan no longer carries the uncertainty surrounding the court challenges by Indigenous groups and the British Columbia government, which threatened to significantly delay the project.

                      "That's not a risk that we're carrying as part of this transaction," said Kean. "The entity will continue to prosecute the appeal, if you will, but it's not a residual risk that Kinder Morgan bears."

                      Kean described the sale as a "fair price." The deal is expected to close in the second half of this year.

                      In the meantime, Kinder Morgan will help the federal government find a third party for the pipeline and the proposed expansion by July 22. Even if a buyer is not found, Kinder Morgan will still be paid the $4.5-billion sale price.

                      Kinder Morgan will continue to own properties in Canada such as its storage facilities in Alberta and its Vancouver export terminal. The Houston-based company continues to say it wants to expand its operations in Canada.

                      "A decision has not yet been made on how to make the best use of the cash proceeds of the transaction. We're now laser focused on closing the transaction," said Kean.

                      Kinder Morgan had temporarily halted work on the Trans Mountain expansion as opposition by the British Columbia government, in particular, escalated.

                      All shareholders of Kinder Morgan Canada must vote on the deal.

                      Comment


                      • #12
                        Likely get the thing built then sell it to a pension fund or something like that? its unfortunate this is what it takes to make it happen but if its what they have to do make it happen!

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                        • #13
                          Enbridge has been selling assets and trying to roll up some subsidiaries in an attempt to raise cash. I wonder if they are going to take a run at this. If they did, I think they would own every major pipeline out of Canada with the exception of TCP Keystone. That would be some serious pricing power and a helluva moat.

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                          • #14
                            Originally posted by Bigsexydawg View Post
                            So how does this get the whole BC tree hugger block resolves? Or is this spending money to try to appease everyone?
                            So we have gun from sticking a hot poker in the eye of private investors who were prepared to build the pipeline to the tax payers footing the bill.

                            Comment


                            • #15
                              Originally posted by tickdog View Post

                              So we have gun from sticking a hot poker in the eye of private investors who were prepared to build the pipeline to the tax payers footing the bill.
                              lol - "Trudeau hates the west, hates oil, loves eco-kooks and will never do anything to help the oil industry"

                              *federal gov't literally buys the pipeline*

                              "yeah...... well, taxpayer dollars"

                              sheesh

                              Comment

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