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Feds pledge to protect TMX pipeline from political risk

The federal government said Wednesday it is prepared to financially protect the contentious Trans Mountain Expansion (TMX) pipeline against what it is calling political delays.

From CTVNews.ca (“Feds’ pledge to financially back Trans Mountain pipeline won’t eliminate all risk: Carr“):

In Ottawa Wednesday morning, Finance Minister Bill Morneau laid out the Liberals’ three guiding principles as talks continue with Kinder Morgan about the fate of the cross-provincial project.

Specifically, the federal government is:

  • Prepared to indemnify the project from any financial loss;
  • Willing to offer this financial security to any company who wants to build the pipeline, should Kinder Morgan back out;
  • Ensuring the financial backing is fair and beneficial to Canadians.

“If Kinder Morgan isn’t 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 provide indemnity to make sure that it gets done,” Morneau said, noting that he is “confident” an agreement will be made.

Though, this step won’t address all of the business risk surrounding the much-debated pipeline project, rather it will take out the “political risk,” according to federal Natural Resources Minister Jim Carr.

In an interview with Don Martin, host of CTV’s Power Play, Carr said the federal move is about addressing “the delays as the result of the political risk,” the project has faced as a result of B.C.’s opposition.

Carr acknowledged that the indemnification won’t address other “normal” business risks to the project’s future, which with Kinder Morgan could include Indigenous blockades or environmental protests.

 

Wed, May 16 2018 » * Big Picture Stuff, Main Page