They both already publicly balked at that idea, as the cancellation of the Northern Gateway and Energy East project still leave bitter taste in everyone's mouth, and there's absolutely nothing so far that ensure Trans Mountain can proceed as plan. Nobody want to throw billions down the drain while this project is tied up in court.
If Kinder Morgan walks away, the only one left holding the basket would be the Canadian government itself.
EDITORIAL: Trudeau, Notley will wear some blame if Trans Mountain vanishes
Edmonton Sun | May 26, 2018
By Thursday, the fate of Kinder Morgan’s Trans Mountain Expansion project should be much clearer. That’s the deadline (May 31) the company set to make a firm decision whether to keep going with the pipeline or not.
Since the one thing that has bothered the company most all along has been the obstructionism of the B.C., and since B.C.’s opposition hasn’t changed, there is no reason to believe Kinder Morgan will go ahead.
So then what happens?
The company could swallow the $1 billion it has already lost and just walk away. And both the federal and Alberta governments could let it. That would end of any chance of getting Alberta oil to tidewater and to foreign markets, other than the U.S.A.
Since that option would hurt the federal Liberals’ re-election chances and end the Alberta NDP’s, it is unlikely the pipeline will die completely even if Kinder Morgan checks out.
Ottawa and Alberta could “indemnify” Kinder Morgan, as federal Finance Minister Bill Morneau proposed two weeks ago. The federal and provincial governments could use tax dollars to underwrite any losses the company suffers as a result of delays caused by protests, political power plays and court challenge.
But if Kinder Morgan decides to get out completely – indemnity or not – then the only option left is to find another buyer. Since it seems unlikely any private investor will step up, that leaves either the federal or Alberta government, or some combination of both.
And that’s nearly as bad as no pipeline at all.
Kinder Morgan knows Ottawa and Alberta are desperate. The feds and the province need this pipeline far more than the company does. So the asking price will be high – likely higher than market value.
Through their green-obsessed policies, the Trudeau and Notley governments have, in three short years, driven away at least $35 billion in energy sector investment, and very likely much, much more.
They both abandoned the Northern Gateway pipeline. And when the Trudeau government changed the regulatory rules and killed Energy East, Premier Rachel Notley couldn’t even be bothered to hold a news conference. She merely issued a press release expressing mild disappointment.
Prime Minister Justin Trudeau also banned most tanker traffic off the West Coast and created a new environmental assessment board that makes future energy megaprojects all but impossible.
In other words, the Trudeau and Notley governments have to have Trans Mountain because they have ruined hope for any alternatives. They’ve put all their oil eggs in one pipeline basket.
So what would it mean to have a government-owned pipeline?
Nothing good.
The line would almost certainly end up costing double. It would take twice as long to complete and never come close to moving the volume of bitumen Kinder Morgan could have shipped with its eyes closed.
An Ottawa-Alberta pipeline might well not even generate enough revenue to cover the tax dollars it would cost.
Let’s hope it doesn’t come to that. But if it does, make no mistake, the fault will be Ottawa’s and Alberta’s every bit as much as B.C.’s.
http://edmontonsun.com/opinion/edit...ll-wear-some-blame-if-trans-mountain-vanishes