The government of Canada has decided to buy the Kinder Morgan Canada Ltd’sTans pipeline for about$3.5 billion. The government has taken this decision on Tuesday, and it hopes to save the political and environmental opposition.
Finance Minister of Canada Bill Morneau said on Tuesday that the government would be buying the 715-mile pipeline expansion and all its related infrastructure outright. The rumour about this started from Monday after it was learned that Canada’s National Observer had got information about the original owner that Kinder Morgan canceled the key permit last month.
Kinder Morgan Canada has given Ottawa until the May 31st to come up with reassurances that it could go ahead with the plans to double the capacity of the existing pipeline despite the restrictions by British Columbia to block the construction. The company has also faced the opposition from the environmentalists and other groups who have worried about the pipeline which spills the tar-like heavy oil.
As per Morneau, he said, “When we are faced with an exceptional situation that puts jobs at risk, that puts our international reputation on the line, our government is prepared to take action.” The purchase was made so that they will overcome the British Columbia opposition.
As per the theory, the federal government candisallow any provincial laws that British Columbia might use to block the pipeline, but in the provision in the Canadian constitution has been used since the 1940s. According to Prime Minister Justin Trudeau said, this is the very strong business case for this pipeline, and government takeover means there is a lot of legal barriers and there is a lot of the challenge points which may disappear. Ottawa has asked to deploy the police and troops to maintain a barrier between the protesters and construction workers.