Bill Morneau, Minister of Finance, walks on stage before delivering a speech at the federal Liberal national convention in Halifax on Saturday, April 21, 2018. Morneau will provide an update Wednesday on the status of his talks with Kinder Morgan to expedite the Trans Mountain pipeline expansion, but he is not expected to announce a deal. THE CANADIAN PRESS/Darren Calabrese

Bill Morneau, Minister of Finance, walks on stage before delivering a speech at the federal Liberal national convention in Halifax on Saturday, April 21, 2018. Morneau will provide an update Wednesday on the status of his talks with Kinder Morgan to expedite the Trans Mountain pipeline expansion, but he is not expected to announce a deal. THE CANADIAN PRESS/Darren Calabrese

UPDATED: Horgan says B.C. defending its interests in Trans Mountain pipeline

Canadian finance minister’s update comes the same day Kinder Morgan shareholders plan to meet

If Kinder Morgan wants to abandon plans to build the Trans Mountain pipeline expansion, there are plenty of other investors out there willing to take up the cause — and they will have the backing of the federal Liberal government, Finance Minister Bill Morneau says.

The government is willing to “provide indemnity” to any investors, be they the project’s original architects or otherwise, to ensure the controversial Alberta-B.C.. project is able to proceed, Morneau told a news conference Wednesday.

The announcement, coming on the very day when the company’s Calgary-based Canadian operation is scheduled to hold its annual meeting, bore the hallmarks of an effort to ratchet up the pressure in advance of Kinder Morgan’s May 31 deadline.

Amid mounting opposition from the B.C. government, environmental groups and protesters, not to mention skittish investors, the company last month halted all non-essential spending on its $7.4-billion plan to double an existing pipeline between Edmonton and Burnaby, B.C.

“We are willing to indemnify the Trans Mountain expansion against unnecessary delays that are politically motivated,” Morneau said — a reference to B.C. Premier John Horgan’s ongoing refusal to allow the project to proceed, despite federal jurisdiction.

“If Kinder Morgan is not interested in building the project — we think plenty of investors would be interested in taking on this project, especially knowing that the federal government believes it is in the best interest of Canadians and is willing to indemnity to make sure it gets built.”

At a news conference Wednesday, Premier Rachel Notley said she’s optimistic the pipeline will still be built on time, re-announcing Bill 12, which could mean Alberta restricts B.C.’s access to oil.

But she wouldn’t specify a timeline or confirm whether Alberta will actually follow through with turning off the taps.

In a news release, Premier John Horgan defended the use of B.C.’s permits.

“The federal finance minister is trying to use our government as an excuse, as the federal government puts taxpayer money on the line to backstop risks to private investors, while completely ignoring the risks to B.C.,” he said.

Morneau said investors need certainty in order to back a project that the government has repeatedly insisted is in the national interest, but steadfastly refused to say what sort of dollar figures are currently on the table.

Morneau did not directly answer when he was asked how other investors or companies could conceivably take over a project to expand an existing pipeline that already has an owner.

“This pipeline that Kinder Morgan currently has, the Trans Mountain pipeline, has been there since 1953, so we see that the twinning of that pipeline is one of the most effective ways to get our resources to market responsibly,” he said.

“We see a path to an outcome that will assure that we can get the advantage that we’re seeking; that’s why those discussions are ongoing. We do know that in order to make sure that we have that path, we need to deal with the extraordinary risks that have been presented by Premier Horgan.”

Steve Kean, Kinder Morgan Canada’s chairman and CEO, acknowledged Morneau’s comments Wednesday as he reiterated the company’s position.

Related: Burnaby asks Supreme Court of Canada to rule in Kinder Morgan case

Related: Indigenous leaders pitch sustainability to Kinder Morgan shareholders

“We remain steadfast in our previously stated principles: clarity on the path forward, particularly with respect to the ability to construct through British Columbia, and ensuring adequate protection of our KML shareholders,” Kean said.

“While discussions are ongoing, we are not yet in alignment and will not negotiate in public.”

Morneau’s talks with Kinder Morgan had their genesis a month ago, when Trudeau promised to deploy both financial and legislative tools to ensure the disputed expansion is able to proceed.

During a remarkable eight-hour stopover in the national capital, an unscheduled break from a busy overseas travel itinerary, Trudeau convened a summit in Ottawa with B.C.’s John Horgan, who has staked his government’s survival on opposing the pipeline, and Alberta Premier Rachel Notley, whose province’s economic health depends on it.

Trudeau instructed Morneau to sit down with Kinder Morgan to find a financial solution that would soothe their investors. He also promised legislation that would reaffirm Ottawa’s authority to press ahead with a development deemed to be in Canada’s national interest.

The Liberal government position is that it approved the project in 2016 after a rejigged environmental assessment and Indigenous consultation process, and in concert with the its climate change and oceans protection plan. Approval came in consultation with the previous B.C. Liberal government, which gave its consent to the project after its own conditions were met.

Horgan’s election last year changed that. His minority government exists at the pleasure of the Green party, and on condition of his continued opposition to the project.

Greenpeace Canada wasted little time interpreting Wednesday’s development as a sign the project is doomed.

“It seems like not even Kinder Morgan wants to move forward with this destructive project,” the group’s climate and energy campaigner Mike Hudema said in a statement. “The risks facing this project go far beyond the B.C. government, and Kinder Morgan knows it.

“Those risks include legal challenges from First Nations, environmental groups and municipal governments, potential legislation in the U.S., along with growing on-the-ground opposition from land and water protectors willing to face arrest to stop this project — from Vancouver to Seattle to Quebec, and beyond.”

Related: Al Gore condemns Kinder Morgan pipeline expansion, sides with Horgan

Related: Builder of Kinder Morgan reinforces concerns over project

With files from The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Mussel inspection sit set up at B.C.-Alberta border. (Contributed)
Okanagan Basin Water Board calls for stronger invasive mussel protection

Letter sets out six recommendations for environment minister George Heyman to consider

(BCCDC)
42 cases of COVID-19 in the Central Okanagan last week

Officials have identified almost 3,000 cases of the virus in the Central Okanagan throughout the pandemic

(Courtesy of West Kelowna Fire Rescue)
UPDATE: West Kelowna structure fire deemed accidental

Firefighter injured in Ponderosa Rd. house fire is recovering at home from knee, back injury

Kasugai Garden Park in downtown Kelowna will open for the season March 15. —Image: City of Kelowna
Downtown Kelowna’s Kasugai Gardens reopens for spring

The Kelowna Memorial Park Cemetery is also set to open its gates later this month

RCMP stock. (Phil McLachlan - Black Press)
Teen grabbed while jogging in Southeast Kelowna

18-year-old woman pulled free, running home and reporting incident to police

B.C. Health Minister Adrian Dix and provincial health officer Dr. Bonnie Henry head for the B.C. legislature press theatre to give a daily update on the COVID-19 pandemic, April 6, 2020. (B.C. government)
B.C. nears 300,000 COVID-19 vaccinations, essential workers next

564 new cases, four deaths, no new outbreaks Thursday

Municipal Affairs Minister Josie Osborne speaks in the B.C. legislature, March 4, 2021. (Hansard TV)
B.C. Liberals, NDP sing in harmony on local election reforms

Bill regulates paid canvassers, allows people in condo buildings

(National Emergency Management Agency)
No tsunami risk to B.C. from powerful New Zealand earthquake: officials

An 8.1 magnitude earthquake shook the north of New Zealand Thursday morning

(AP Photo/Richard Vogel, File)
Pandemic stress, isolation key factors as to why Canadians turned to cannabis, alcohol

Study found that isolation played key role in Canadians’ substance use

A herd of turkeys caused a traffic jam in Armstrong March 3. (Video still)
Turkeys talk back at traffic in Spallumcheen

VIDEO: ‘Bossy little buggers refused to move’

(File photo)
Kamloops Mountie bitten while arresting woman

The assault on March 1 is the latest in a string of incidents that have left local officers injured

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Penticton RCMP will be attending Friday’s protest to enforce provincial health orders that restrict all gatherings. (File photo)
Penticton RCMP warn of potential fines for Friday’s protest in Gyro Park

Police will be there to enforce provincial health orders that restrict all organized gatherings

Most Read