Canada Govt Ready to Indemnify Kinder Morgan Pipeline Project
The Canadian government is prepared to financially shield Kinder Morgan (KMI) Canada Ltd's proposed Trans Mountain pipeline expansion against unnecessary delays that are politically motivated, Finance Minister Bill Morneau said on Wednesday.
Morneau also told a news conference that if Kinder Morgan decided to walk away from the project, which the provincial government of British Columbia opposes, the indemnification would stay in place in case another company took over.
"We are willing to indemnify the Trans Mountain expansion against unnecessary delays that are politically motivated," Morneau said.
Although the federal government has approved the pipeline that would carry Alberta crude to the Pacific coast, the project faces opposition in British Columbia, as well as from environmentalists and some indigenous groups.
Morneau said the indemnification would allow the project to move forward. Kinder Morgan Canada has given the government a deadline of May 31 to provide the assurances the company needs to go ahead.
Morneau said he was confident that Ottawa could come to an agreement with Kinder Morgan Canada that was fair for shareholders and Canadian taxpayers.
Reporting by David Ljunggren and Leah Schnurr