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Home / Business / Canadian government buys kids Morgan's Trans Mountain Pipeline

Canadian government buys kids Morgan's Trans Mountain Pipeline



OTTAWA – The Canadian government said on Tuesday that it will buy a pipeline that is at the center of widespread protests from environmentalists and some indigenous groups, putting the government directly on the side of the country's oil industry.

The $ 4.5 billion purchase ensures that the Trans Mountain Pipeline, which transports oil from Alberta to a port in a suburb of Vancouver, British Columbia, this summer begins a planned expansion.

The pipeline is a focal point for a wider debate in Canada about the environmental impact of the oil sump tapping in Alberta, which critics consider a particularly polluting source of energy. Similar objections fueled efforts to block the Alberta Keystone XL pipeline to the United States.

The oil industry and the province of Alberta argue that the expanded pipeline would create needed jobs and help the economy while the province was British Columbia (1

9659005) "The Trans Mountain extension project is fundamental to Canada and Canadians," said Bill Morneau, the federal finance minister, told reporters after a special session in Ottawa to discuss the deal. "The position of our government is clear: it has to be built and it will be built."

The decision to buy the pipeline could be the biggest test of Prime Minister Justin Trudeau's claim that his government balances energy needs with environmental concerns such as climate change. It is likely that Mr Trudeau's relationships with environmental groups are deteriorating.

As with the hotly contested Keystone XL pipeline, a plan was planned to connect the oil sands to the Gulf Coast of the United States Many environmentalists in the United States hope that stopping Trans Mountain will result in future production of the oil sands, which they consider a particularly dirty source consider, brake or even reduce fossil fuels.

The provincial opposition led Morgan to suspend negligible spending on Trans Mountain last month. Citing uncertainty among investors, it also said it would give up the expansion plan if British Columbia did not stop its attempts to block Thursday this Thursday.

Follow Ian Austen on Twitter: @ianrausten.


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