The Canadian government announced it will spend $4.5 billion ($3.5 billion USD) to buy the beleaguered Trans Mountain pipeline expansion project. The expansion plan — which would triple the volume of oil being carried from Alberta’s tar sands to an export terminal near Vancouver, from 300,000 barrels a day to 890,000 — has faced years of fierce opposition from environmentalists and some indigenous groups.
The Canadian government announced it will spend $4.5 billion ($3.5 billion USD) to buy the beleaguered Trans Mountain pipeline expansion project. The expansion plan — which would triple the volume of oil being carried from Alberta’s tar sands to an export terminal near Vancouver, from 300,000 barrels a day to 890,000 — has faced years of fierce opposition from environmentalists and some indigenous groups.
Canadian finance minister Bill Morneau told reporters this morning that the government will take ownership of the project temporarily until a new owner can be found. The purchase agreement will ensure that construction of the new pipeline continues through this summer.
“Our message today is simple: when we are faced with an exceptional situation that puts jobs at risk, that puts our international reputation on the line, our government is prepared to take action,” Morneau said.
Read more Yale Environment 360
