James Alexander Michie: Trans Mountain does not get new buyer | The Canadian Press

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Trans Mountain James Alexander Michie

Ottawa fails to secure new buyer for Trans Mountain pipeline by deadline | James Alexander Michie

Author: James Alexander Michie

Because the Trans Mountain pipeline could not change the project to another buyer in the private sector, the Canadian Government will become the owner of the expansion of the pipeline.

It was assumed that before July 22 Trans Mountain would have a new buyer, which is why the owner of the pipeline, Kinder Morgan, would be working, however, because no agreement has been reached now, the company is expected to pipeline accept Ottawa’s $ 4.5 billion offer to buy the project from its shareholders.

It is also estimated that Liberals purchase said pipeline for $ 4.5B to ensure that the expansion is carried out, including the existing pipeline, pumping stations, right-of-way and the Westridge Maritime Terminal in Burnaby, BC, plus or less for August or maybe September.

The owner of the pipeline, Kinder Morgan, had been working with the government to identify another buyer before July 22.

However, the purchase price of $ 4,500 million does not cover the costs involved in the construction of the new pipeline, in order to reach this goal according to previous estimates would require at least $ 7.4 billion, therefore, find another buyer for said project before The term would be complicated due to the risks involved in the project. The government also insists that it is not in its plans to own and operate the pipeline in the long term, in fact, according to the government, there are numerous groups that could be interested in buying the project, as well as pension funds and indigenous groups.

On the other hand, the spokesman of Finances Bill Morneau, Daniel Lauzon, assures that Ottawa hopes to sell the pipeline to a partner that is suitable and that in turn, this becomes the best thing for the Canadian nation and its inhabitants.

Take a read: https://www.cbc.ca/news/canada/trans-mountain-pipeline-ownership-1.4757351

Source: Lee Berthiaume | The Canadian Press

 


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