Prime Minister Justin Trudeau reiterated his support for the expansion of the Kinder Morgan pipeline to bring oil from Alberta’s tar sands to shipping terminals in British Columbia, which faces new hurdles as a newly founded coalition of provincial New Democrats and Greens vowed to block the project.
The federal Liberal government approved the controversial 980 km project in November 2016.
At the time Trudeau cited the economic benefits of not only getting energy to maritime terminals on the Pacific Coast, increasing Canada’s ability to export oil to crucial markets in Asia and the western United States, but also the jobs created during the construction process.
The federal government estimates the twinning of the line will contribute $4.5 billion to federal and provincial coffers, and create 15,000 jobs in the construction phase.
“The decision we took on the Trans Mountain pipeline was based on facts and evidence on what is in the best interests of Canadians and indeed, all of Canada,” Trudeau said Tuesday in Rome, where he held a joint news conference with Italian Prime Minister Paolo Gentiloni.
“Regardless of the change in government in British Columbia or anywhere, the facts and evidence do not change,” he said.
Political shakeup in British Columbia
His comments come as the anti-pipeline Green Party and the New Democrats in British Columbia announced Monday they’ve come to an agreement to form a minority NDP government that could cast doubt on the project’s future.
Both parties have voiced their opposition to the $7.4 billion expansion project, which would see the pipeline running from Edmonton to Burnaby nearly triple its capacity to 890,000 barrels of crude per day.
Environmental groups and several Indigenous communities in British Columbia are vehemently opposed to the project, fearing the devastating environmental impact of potential oil spills, increased tanker traffic in the ecologically sensitive area and the growth in Canada’s carbon footprint.
Kinder Morgan proceeded Tuesday with its initial public offering (IPO) for the expansion but its shares opened below the price set for the IPO.
Still, Ian Anderson, president of Kinder Morgan Canada Ltd., sounded optimistic.
“This is an exciting day for our customers for communities and for the many individuals who are relying on this project to deliver jobs and economic benefits to their communities,” he said in a statement. “This securing of financing for the project demonstrates the need for and interest in the opportunity for Canada to have better access to world markets.”
Construction could start as early as September, with a completion date of December 2019.
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