Kinder Morgan faces more hurdles after federal OK of Trans Mountain pipeline

Prime Minister Justin Trudeau announces his government is approving Kinder Morgan’s proposal to triple the capacity of its Trans Mountain pipeline from Alberta to Burnaby, B.C. – a $6.8-billion project that has sparked protests by climate change activists.

These pipelines will increase the western province of Alberta’s oil output by more than a million barrels to be sold in the global market, which “is in the best interests of Canada”, Trudeau said in his announcement.

Clark, meanwhile, can publicly hem and haw for the next six months, all the way to election day, claiming to be standing up for all British Columbians with her famous five requirements, all the while negotiating with Trudeau some sort of post-election pipeline surrender in exchange for some advantageous considerations on, say, liquid natural gas developments.

“If I thought this project was unsafe for the B.C. coast I would reject it”, Prime Minister Justin Trudeau said in Ottawa. She said the risk of a spill along the route through British Columbia or off the coast is unacceptable, and that the project will also lead to greater carbon emissions, which are fueling climate change. “We are excited to move forward and get this project built, for the benefit of our customers, communities and all Canadians”, Kinder Morgan Canada President Ian Anderson said in a statement.

The pipeline is expected to be a key issue in May’s B.C. election, potentially putting Notley at odds with her NDP colleagues as they challenge Clark’s Liberal government.

“A clear message has emerged through our government’s extensive consultations with Canadians: the economy and the environment go hand in hand”, read a release from the government.

The projected cost of the project, which will almost double the existing pipeline, is approximately $6.8 billion.

Kinder Morgan’s $5.06 billion project would almost triple capacity on the artery to 890,000 barrels a day.

Notley said Trans Mountain is different from the Northern Gateway pipeline, which did not receive the Trudeau administration’s seal of approval.

Trudeau also promised to introduce legislation for a moratorium on crude oil tanker shipping on B.C.’s north coast.

Penticton MLA Dan Ashton called B.C. a resource province and Canada a resource country when discussing the employment opportunities the potential Trans Mountain pipeline expansion could bring to Penticton and the Okanagan. The Harper government originally approved the pipeline in June 2014 with conditions, following a review into its environmental impact.

In a research note, RBC Capital Markets analyst Elvira Scotto said Trans Mountain’s federal approval means Kinder Morgan can likely charge a “premium” to allow a partner to join the project. It expects construction to begin in September of 2017 and for the pipeline to enter service in late 2019.

Clark said this condition has not yet been met.

Despite Ottawa’s rubber stamp, stiff opposition will come from B.C. over the TransMountain pipeline.

Clark told reporters the conditions are “a pathway” to her government saying “yes” to the project.

Taras adds the pipeline approval put BC politicians in an awkward spot because they face a backlash if they support a project their constituents oppose.