Federal government set to own Trans Mountain expansion after deadline passes
Posted Jul 23, 2018 7:13 am.
This article is more than 5 years old.
The federal government is set to become the official owner of the Trans Mountain pipeline expansion, after failing to quickly flip the project to another private-sector buyer.
Pipeline owner Kinder Morgan had been working with the government to identify another buyer before July 22nd.
But with that date set to pass without a deal, it’s expected the pipeline company will now take Ottawa’s $4.5 billion offer to purchase the project to its shareholders.
Pending their approval, the sale will be approved sometime in August or September.
The purchase price does not cover the construction costs of building the new pipeline, which previous estimates have pegged at around $7.4 billion.
Finding another buyer for the project before Sunday’s deadline was widely considered a long shot because of the project’s risks.
But the government insists it does not plan to own and operate the pipeline over the long term, and it’s expected to continue talking to interested parties.
