ANNOUNCED AS TEMPORARYNo
Bailout (capital injection or equity participation)
Finance Minister Bill Morneau and Natural Resources Minister Jim Carr announced on May 29, 2018 that the government of Canada will buy Kinder Morgan Canada Ltd.’s Trans Mountain pipeline for Can.$4.5 billion (U.S.$3.5 billion) “in order to secure the timely completion of the Trans Mountain Expansion Project.” An unspecified level of federal loan guarantees will ensure that construction continues through the 2018 season. They announced that this is a temporary measure:
It is not, however, the intention of the Government of Canada to be a long-term owner of this project. At the appropriate time, Canada will work with investors to transfer the project and related assets to a new owner or owners, in a way that ensures the project's construction and operation will proceed in a manner that protects the public interest.
The pipeline is to run from the oil sands of Alberta to a port in the Pacific province of British Columbia, and will allow sales of Canadian crude to foreign markets other than the United States at higher prices.
The project remains a matter of intense controversy for environmental reasons.
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