The government announced yesterday morning that they were going to acquire the Trans Mountain pipeline and the project to twin it from Kinder Morgan – but that this would be a short-term acquisition if another buyer can’t be found before August. In the meantime, a loan would be extended to Kinder Morgan to begin construction immediately. Rachel Notley cheered and said that it’s time for Albertans to pick up tools and get to work on building it. Morneau, incidentally, won’t say what those construction costs will be, as that’s commercially sensitive information that could undermine the process for finding a buyer for the pipeline. As for who some of those buyers might be, here’s a look at that question. The buyout – if it happens – won’t eliminate opposition, but it changes the legal situation for BC in that federal paramountcy is even more prevalent than it was before. BC premier John Horgan says that his fight will carry on, but he’s suddenly saying that this is all because the federal oceans protection plan isn’t good enough, which is…new, and not terribly convincing. As for Indigenous activists, some say that the announcement is tantamount to a “declaration of war,” but other Indigenous communities are seeing this as an opportunity to buy a stake in the pipeline to benefit their communities.
B.C. premier says pipeline decision 'does not change my concerns' #bcpoli https://t.co/l50oOcaIJy pic.twitter.com/aBkES1TEbD
— Megan Thomas (@meganTcbc) May 29, 2018
https://twitter.com/InklessPW/status/1001476415815127041
https://twitter.com/kevinmilligan/status/1001481702470905857
https://twitter.com/kevinmilligan/status/1001486610729394176
National Bank Financial's economist Warren Lovely explains to clients why Canada Fin Min Morneau is largely correct when he said no immediate fiscal hit to public finances from acquisition of Trans Mountain pipeline assets; pic.twitter.com/d2W1yKkcjB
— Paul Vieira (@paulvieira) May 30, 2018
The Conservatives immediately stated that this was all because of Liberal incompetence, that Kinder Morgan never said they wanted to sell, that they only wanted “certainty,” and then Andrew Scheer engaged in a bunch of revisionist history that falsely claimed that other pipeline projects never got government financing (it’s like he’s never read about the Trans Canada Pipeline construction in the 1950s, not to mention the development of the Hybernia offshore oilfield, or the development of the oilsands themselves). Oh, and Scheer’s definition of “certainty” that he would provide includes forgoing the current environmental assessment bill (has he talked to environmental lawyers or looked at the kinds of court challenges that the Conservative legislation has generated?) and his insistence that they could somehow “assert” federal jurisdiction by means of a declaration or a bill is ridiculous because they already had jurisdiction. The pipeline crosses a provincial boundary, thereby making it federal. Jurisdiction was never seriously in question. His MPs and other federal and provincial mouthpieces have been trying to spin this as some kind of conspiracy that Trudeau is only buying the pipeline in order to take control of it and shut it down so that they can shut down the entire oil sector. Seriously? You expect people to believe that, after Trudeau has staked an enormous amount of political capital on this very move? Really?
From @jkenney email: "the last midstream investor remaining, Kinder Morgan, has left our country." TransCanada, Pembina, Interpipeline, LNG Canada, Enbridge, and several others surrender.
— Andrew Leach (@andrew_leach) May 30, 2018
This MLA, cast out from Kenney’s UCP, raises the spectre there Trudeau would leverage Trans Mountain ownership to lock Alberta into the carbon tax FOREVER pic.twitter.com/CkGbgeoelD
— Jason Markusoff (@markusoff) May 29, 2018
@Dfildebrandt is wrong here. Pipeline owners don't hold that authority. In fact, a large part of the reason we regulate pipelines is so that pipeline cos can't lever market power. https://t.co/3X0vTdbj9r
— Andrew Leach (@andrew_leach) May 29, 2018
In other reaction, Andrew Coyne sees this as not all bad news (though I’m not sure how much more the Liberals could have done to avoid it), while John Ivison sees irony in the government “getting into the pipeline business” on the same day as the Auditor General blasted them for an inability to manage big projects. Tim Harper sees this as a potential precursor to tougher days ahead for Trudeau, while Jason Markusoff notes that this will make it hard for Albertans to sustain the narrative that Ottawa hates them (though by gods, the Conservatives in Ottawa are really trying). Andrew Leach also gives a very detailed analysis of the purchase in Twitter threads here, here, here, and here.