• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 11 days Does Toyota Know Something That We Don’t?
  • 6 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 5 days America should go after China but it should be done in a wise way.
  • 9 hours World could get rid of Putin and Russia but nobody is bold enough
  • 7 hours How Far Have We Really Gotten With Alternative Energy
  • 13 days China is using Chinese Names of Cities on their Border with Russia.
  • 1 day The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 2 days Even Shell Agrees with Climate Change!
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 13 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population

Breaking News:

OPEC Lifts Production in February

Oil Markets Await the Next OPEC+ Announcement

Oil Markets Await the Next OPEC+ Announcement

Oil prices remained rangebound in…

Canada Considers Selling Stake In Trans Mountain Pipeline To Indigenous Groups

The Canadian government is considering the sale of a stake in the troubled Trans Mountain pipeline project to Indigenous communities.

Per a report by Bloomberg, which cited documents from the office of Deputy PM Chrystia Freeland, Ottawa is prepared to fund the sale itself so the communities don’t risk their own money.

The news breaks days after Reuters reported that the federal government in Canada had guaranteed some $2.2 billion worth of new loans for the expansion projects, which have encountered cost overruns and delays due to strong environmentalist and political opposition.

Fierce opposition in British Columbia eventually forced Kinder Morgan, the project operator, to reconsider its commitment to expand the Trans Mountain pipeline, which would increase the daily capacity of the pipeline to 890,000 barrels per day from 300,000 bpd.

Back in 2018, the government of Canada reached an agreement with Kinder Morgan to buy the Trans Mountain expansion project and related pipeline and terminal assets.

Over the past few years, the price tag for the expansion project has ballooned from an initial C$7.4 billion, or $5.5 billion, to some C$30.9 billion, equal to around $23 billion. The guarantees come a year after Ottawa guaranteed C$10 billion in loans for the project, equal to some $7 billion.

Yet although the government took the Trans Mountain project off Kinder Morgan’s hands, it never intended to be the permanent owner of the project. Reports about indigenous stakeholding are not new but so far this has not translated into actions.

Now, per the documents cited by Bloomberg, the federal government plans to set up a special investment vehicle for the stake purchase, with the possibility for the vehicle to be used more than once for further stake purchases.

ADVERTISEMENT

Some Canadian oil companies are making higher production plans in anticipation of the pipeline expansion already, even though most of their oil will likely continue going south instead of west to Asia.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News