Kinder Morgan Canada (KML) Price Target Cut to C$17.00

Minister of Finance Bill Morneau speaks to the media in Calgary Alta. Wednesday

Minister of Finance Bill Morneau speaks to the media in Calgary Alta. Wednesday

"The federal government is going to have a higher obligation to make sure that the Canadian workforce is going to be the one to benefit", he said, especially because the project is under intense scrutiny. Canada has the world's third largest oil reserves but 99 percent of its exports now go to refiners in the USA, where limits on pipeline and refinery capacity mean Canadian oil sells at a discount.

Unfortunately, given that the federal government seemed reticent to exert its authority in the pipeline dispute, it isn't clear that it will ascribe these powers to its Crown corporation. Pipeline capacity will increase from 300,000 to 890,000 barrels of oil per day.

Court documents show the lengths protesters have going to continue demonstrating at the Trans Mountain pipeline site in Burnaby.

He added the purchasing consortium should also include an established pipeline company such as TransCanada Corp. or Enbridge Inc.to look after operations.

The Canadian government purchased the pipeline for 4.5 billion Canadian dollars-around 3.5 billion American dollars.

As the Trudeau government prepares to take over the controversial $7.4-billion Trans Mountain Pipeline expansion, project management experts say it is critical that government oversight is handled properly.

A public demonstration opposing the Kinder Morgan pipeline buyout by the federal government saw people carrying signs protesting various issues, from the pipeline project itself to the Site C dam, along with whale-shaped placards supporting the diminishing orca populations on Thursday evening. "We will not stand down no matter who buys this ill-fated and exorbitantly priced pipeline". A government commitment, she said, could "ensure women, Indigenous people, and apprentices get work", in the trades.

She has worked as an operating engineer for 10 years, having become a journeyperson and contributed to pipeline projects in the past.

Canada's Prime Minister Justin Trudeau spoke May 29 with Premier Horgan to confirm that the Government of Canada has reached a commercial agreement with Kinder Morgan "in order to secure the timely completion of the Trans Mountain Expansion Project".

Steve Kean, chairman and chief executive of Kinder Morgan Canada Ltd., said the deal represents the best opportunity to complete the expansion project.

The Provinces of British Columbia in April asked the B.C. Court of Appeal to decide the province has the power to restrict increased heavy crude shipments to its coast due to oil spill fears.

Critics on both the right and the left have criticized the move, the right saying the government should not be using taxpayer money, with the left saying the project is futile and flies in the face of clean energy goals.

Morneau, without offering any names, said “many investors have already expressed interest in the project, including indigenous groups, Canadian pension funds and others.”.

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