Trudeau Gives The Trans Mountain Pipeline Hope

Canadian Prime Minister Justin Trudeau said that Kinder Morgan's Trans Mountain pipeline will be built, according to Reuters.

"I have asked the finance minister to engage in discussions, financial discussions, with Kinder Morgan and that's exactly what is going on," he said. "We will ensure that this pipeline gets built in a way that upholds and protects the interests of Canadians. This pipeline will get built."

The Prime Minister's comments come a day after Kinder Morgan expressed its pessimistic outlook on the project, saying that the project now seems unsupportable given the evens of the last few weeks that has pitted the governments of oil-rich Alberta against that of British Columbia and saw it rise to the level of a trade war between the two.

"It's become clear this particular investment may be untenable for a private party to undertake. The events of the last 10 days have confirmed those views."

But the financial aspect is not the only issue causing Kinder Morgan to doubt the viability of the project, according to Kinder Morgan CEO Steven Kean. "We've pointed out there are significant differences between governments, and those differences are outside of our ability to resolve," Kean said at a joint KMI/KML Q1 2018 quarterly earnings call on Wednesday, adding, "They're really two separate things. Most of the investment is in British Columbia, where the government is in opposition to the project ... That is an issue that, in our view, needs to be resolved."

Related: Canada's Oil Patch To Turn Profitable In 2018

While the battle between the governments of Alberta and British Columbia continue to duke it out, refereed by PM Trudeau, a new poll showed that the Canadian public is warming to the project, and may be souring on the B.C. government's opposition antics over the pipeline that would triple the amount of crude oil that moves from Alberta to B.C. The new poll by Angus Reid Institute now shows that two out of three Canadians feel that the B.C. government is wrong in its stance against the pipeline project-a 10 percent rise over the same poll in February.

By Julianne Geiger for Oilprice.com

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