PROCESSWEST Magazine Online

Alberta throws support behind Ottawa's decision to purchase pipeline

Don Horne   


It didn’t take long Alberta Premier Rachel Notley to voice her support for Ottawa’s announcement that it was bankrolling the Trans Mountain Pipeline expansion.

According to a statement from the Premier, the deal puts people to work building the pipeline immediately, with the Trans Mountain Pipeline expansion expected to generate billions of dollars in economic activity and government revenue in Alberta.

“When Kinder Morgan issued its deadline on April 8, the Government of Alberta committed that the deadline would be met. Today, we are delivering on that commitment,” says Premier Notley. “We are pleased to have worked with the federal government to ensure construction resumes, certainty is increased and Albertans and all Canadians enjoy the many benefits of having this project go forward. There is more work to do, but we will not stop until the job is done.”

Alberta is providing support in the form of a backstop that would be called upon in unforeseen circumstances. Alberta’s contribution would range from zero to a maximum of $2 billion, and would be payable only upon completion of the project. If Alberta’s backstop is called upon, Alberta will receive equity in the completed project.


In addition to providing financial certainty to the project, federal ownership of the project shields the Trans Mountain Pipeline from the political risk to which the project had previously been subjected.

Existing profit sharing or other agreements established by Kinder Morgan and Indigenous groups will be maintained under this new arrangement.

According to the Alberta government press release, the Trans Mountain Expansion Project will help create tens of thousands of jobs, ensure Canadians “get fair value for our oil in international markets and help keep us moving forward on our climate change commitments.

“This will mean more money for health care, schools, roads and public transit across Canada,” states the press release. “Getting Canadian energy to tidewater through the expansion of this pipeline will help Albertans and Canadians.”

The Government of Alberta has agreed to provide support to the Government of Canada in its acquisition of the Trans Mountain Expansion Project and associated assets. This support was considered by many to be instrumental to ensuring the continued construction and timely completion of the project.


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