Canada's Trudeau pledges money, new law to ensure contentious pipeline is built

Prime Minister, premiers meet over controversial Trans Mountain pipeline

"If the federal government was serious about this, the simplest thing would have been two weeks ago, to pick up the phone and say, 'You know that meeting we scheduled to sign the ($4.1 billion) in infrastructure funds?"

On that front, Canada's own record on infrastructure and "national-interest projects" has room for improvement, Kiefer said, including Kinder Morgan's Trans Mountain pipeline, which is the subject of a fierce Alberta-B.C. battle.

British Columbia Premier John Horgan said after the meeting he had not changed his position that the risks of a spill from the pipeline were too great.

"They have to see that there are consequences", Kenney said, after Prime Minister Justin Trudeau announced new federal legislation is coming to reassert federal jurisdiction over the pipeline.

Notley said legislation she promised that will allow it to alter flows of oil through the existing Trans Mountain pipeline into going to be introduced in the Alberta legislature this week. "It is a project in the national interest", Trudeau said.

Notley spoke after an emergency meeting with Prime Minister Justin Trudeau and the premier of British Columbia, who opposes plans to nearly triple the capacity of the Trans Mountain pipeline from oil-rich Alberta to the west coast.

Kenney said the projects future looks bleak, but he is still hopeful that common sense will prevail.

"Kinder Morgan's announcement on Sunday was unexpected", said a senior government official who declined to be identified given the sensitivity of the situation.

Trudeau said recently he would not have approved the pipeline if he wasn't convinced the environment was protected and said he has been consistent for years that he believes the environment and the economy go together and can both be managed for the benefit of all Canadians. The company set a firm deadline of May 31 to have that request fulfilled.

Mr Trudeau's Liberal government in 2016 approved the expansion project, aimed at helping landlocked Alberta ship its oil sands to the Pacific coast and then to overseas markets.

It is not clear whether Ottawa's financial and legislative backstops would ensure the pipeline gets built.

Notley seemed quite happy with the outcome of the meeting and said she is confident the nature of the financial discussions taking place with Kinder Morgan will be enough to overcome investor concerns.

Various polls over the past few months suggest, strongly, that Canadians are increasingly becoming fed up with the Trudeau Liberals and are grouping for a demand for change in 2019.

The Trans Mountain pipeline expansion by the Canadian division of Texas-based Kinder Morgan would dramatically increase the number of oil tankers traveling the shared waters between Canada and Washington state.

"My obligation is to the people of B.C. and I'm going to defend that until I'm no longer premier", he said.

Kenney said in recent days the federal government has said everything's on the table to ensure construction, yet we aren't getting closer to getting this critical project built.

On Monday, Alberta is expected to move ahead with emergency legislation aimed at exacting economic pain on B.C., potentially including restrictions of crude shipments into British Columbia, the province has said.

The lack of pipeline capacity means Canadian crude trades at a discount to the US oil benchmark.



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