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B.C., Alberta clash as Kinder Morgan suspends Trans Mountain work

Alberta Premier Rachel Notley promises BԪַserious economic consequencesBԪַ for B.C.
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Kinder Morgan announced Sunday afternoon that it will stop all non-essential work and any related spending on the Trans Mountain pipeline expansion between Edmonton and Burnaby.

The controversial project would twin an existing oil pipeline that extends from central Alberta to the west coast.

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BԪַA company cannot resolve differences between governments. While we have succeeded in all legal challenges to date, a company cannot litigate its way to an in-service pipeline amidst jurisdictional differences between governments,BԪַ said KML chairman and CEO Steve Kean in a statement.

The company said it would speak with stakeholders before making a decision by May 31, BԪַrather than risking billions of dollars on an outcome that is outside of our control.BԪַ

This move comes after Kinder Morgan had already slowed down work on the pipeline expansion, as it focused on advancing the permitting process rather than pushing ahead at full speed during the first half of 2018.

BԪַWe appreciate the support shown by the federal government and the provinces of Alberta and Saskatchewan, and are grateful for the strong endorsements among the majority of communities along the route and 43 Indigenous communities, as well as customers, contractors and unions,BԪַ Kean continued.

BԪַThe fact remains that a substantial portion of the project must be constructed through British Columbia, and since the change in government in June 2017, that government has been clear and public in its intention to use BԪַevery tool in the toolboxBԪַ to stop the project. The uncertainty created by BC has not been resolved but instead has escalated into an inter-governmental dispute.BԪַ

Despite the news, Alberta Premier Rachel Notley said she was BԪַvery optimisticBԪַ that the pipeline would be built.

BԪַAlbertans have been clear, get this pipeline built and Albertans are right, this pipeline must be built,BԪַ Notley told the media Sunday.

She threatened to bring forth legislation that would heat up the trade war between the two provinces.

BԪַIf Premier Horgan believes he can harass this project without serious economic consequences for British Columbia, then he is wrong,BԪַ Notley said.

BԪַIf I was a resident of British Columbia I would be very worried about the investment climate of B.C.BԪַ

Speaking at a press conference an hour later, Premier John Horgan said he wasnBԪַt worried in the slightest.

BԪַWe are open for business and we are a great place to invest,BԪַ Horgan said. BԪַI have no intention of escalating controversy across the country.

BԪַI have every expectation that people will respect British ColumbiaBԪַs right to defend our interest and defend our coast, and thatBԪַs what I will do,BԪַ he affirmed.

Although Horgan and Notley havenBԪַt spoken since Kinder MorganBԪַs announcement today, Horgan said that he has spoken with Prime Minister Justin Trudeau.

While the two disagree on the pipeline, Horgan said BԪַthere were no threats, there was no intimidationBԪַ from Trudeau, despite a longstanding federal belief that the project is in the national interest of the country.

The Trans Mountain project has been the source of months of tension between the two provinces. , a ban on B.C. wine, and suspended talks to purchase electricity from B.C., with Horgan vowing to fight the pipeline in court.

BԪַThe Government of Alberta can do and should do whatever it thinks is necessary,BԪַ said Horgan.

When asked how B.C. can justify pushing back against a federally-approved project, Horgan said he believed protecting B.C. was fully within the provinceBԪַs jurisdiction.

There was BԪַno constitutional crisisBԪַ when Energy East was cancelled, Horgan pointed out.

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If Kinder MorganBԪַs investors are scared off by the interprovincial dispute, Notley said that Alberta wouldnBԪַt be.

BԪַAlberta is prepared to be an investor in the pipeline,BԪַ she added, declining to say what that would mean financially for her province.

Notley lauded the federal government for its pro-pipeline stance but said that Ottawa needs to do more to push the project through.

BԪַFederal approval of a project must be worth more than the paper it is written on,BԪַ she said.

The work stoppage on the pipeline expansion comes just days after Prime Minister Justin Trudeau visited B.C. to reiterate CanadaBԪַs commitment to the project, despite ongoing opposition from protesters and the B.C. government.

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Kinder Morgan said it has spent $1.1 billion to develop the project since its initial filing with the National Energy Board in 2013. Concern over the provincial governmentBԪַs participation in an ongoing judicial review and its assertion of broad jurisdiction have created growing uncertainty to the regulatory landscape.


katya.slepian@bpdigital.ca

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