To ensure construction continues immediately, our government made an investment of $4.5 billion to purchase the Trans Mountain Pipeline and the expansion project (the TMX).The project allows Alberta resources to get to new international markets, creates 15,000+ jobs and adds billions to our economy.
The reason for the purchase was to guarantee this summer’s construction season for workers and to ensure the TMX is built to completion in a timely fashion. To that end, we have reached an agreement with Kinder Morgan to buy, at fair value, the existing Trans Mountain pipeline, together with the infrastructure related to the Trans Mountain Expansion Project. This $4.5 billion acquisition is an asset that had a return on investment of 9.5% last year. A project of this magnitude and value cannot, and will not be stymied by the unreasonable actions of one provincial government—threatening the livelihoods of thousands of people and damaging Canada’s reputation as a trustworthy place to invest—as a result the Government of Canada stepped in. The move asserts federal authority over the project.
Unlike all other pipeline projects approved over the past 12 years, TMX will carry western Canadian resources to tidewater, putting them in offshore export position to benefit from global prices—for the first time ever.
Critically important—This project is going forward in the context of our pan-Canadian framework for dealing with climate change, huge new investments in energy efficiency, cleaner technologies and greener fuels, a new Pipeline Safety Act, the new Indigenous Advisory Monitoring Committee, and Canada’s new $1.5 billion Oceans Protection Plan. The project shows that we are both growing the economy and protecting our environment at the same time.
This will not result in long-term federal ownership of the pipeline. At the appropriate time, Canada will seek to transfer the project to new private sector owners in a way that will ensure the project’s construction and operation, while protecting the public interest.
Past experience in matters of this kind—like Peter Lougheed’s investment in Syncrude and Brian Mulroney’s investment in Hibernia—produced impressive results for Canadians, in the national interest. TMX is of the same calibre.
We said we’d get it done, and here we are. I am proud to deliver this pipeline to Calgarians and show how a strong Alberta is a strong Canada.
For more information, I encourage you to check out this CBC article.News Release Backgrounder
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