Kinder Morgan Canada Ltd. stock stumbled again on Wednesday after two banks cut their target share prices in the wake of the company's deal to sell its biggest current and growth asset - the Trans Mountain pipeline system - to the federal government.
The Globe and Mail quoted B.C. Attorney General David Ebby as saying "The province is fully living up to its commitments under the agreement, and we expect that any future owner of the project would live up to theirs", noting that the original agreement between the province and Kinder Morgan included no condition that the provincial government can not change its mind about the Trans Mountain expansion.
The purchase price includes most of Kinder Morgan Canada's core assets - the existing pipeline, the pumping stations and rights of way, and the Westridge marine terminal in Burnaby, B.C.
We are endeavouring to move positively into the next decades without further harming the Earth.
But many indigenous people see the 620 miles (1,000 kilometers) of new pipeline as a threat to their lands, echoing concerns raised by Native Americans about the Keystone XL project in the U.S. Many in Canada say it also raises broader environmental concerns by enabling increased development of the carbon-heavy oil sands. CIBC downgraded shares of Kinder Morgan Canada from an "outperform" rating to a "neutral" rating and decreased their price objective for the company from C$23.00 to C$22.00 in a report on Tuesday, April 10th.
"There was a promise made, and obviously it's going to be a promise kept, that one way or another this pipeline would be built because it's in the national interest", Crey said.
Horgan said his province will continue to seek a legal remedy to stop the expansion.
Canadian Prime Minister Justin Trudeau says that the expansion of the Trans Mountain pipeline is "a vital project in the national interest" and that its purchase will ensure the expansion is built, despite protests from environmentalists and other groups.
Multiple court cases are still pending against it, including the constitutional reference question from the B.C. government.
March 9, 2018: B.C. Supreme Court grants interim injunction aimed at preventing anti-pipeline activists from protesting construction at two terminals in Burnaby.
For his part, Trudeau rejected the idea, accusing the Conservatives of raising "old news" because they were embarrassed that they couldn't get pipelines built when they were in government.
The fact the federal government needed to buy Trans Mountain to ensure the project goes ahead does not bode well for the industry, said Chris Bloomer, CEO of the Canadian Energy Pipeline Association. For years, it transported standard crude oil without controversy. The goal is to have a new buyer in place for the vote, and to potentially turn a profit, they said.
British Columbia Premier John Horgan said he's anxious about the "catastrophic consequences" should there be a spill, regardless of the owner, and will continue to fight it in court.
Alberta Premier Rachel Notley, however, could barely contain her delight.
She also said any money the province puts in will be converted to equity in the pipeline, so there should be no negative effect on Alberta's credit rating. We don't have a lot of people who are hardcore federal Liberals.
"The prime minister is forcing them to fix his failure on Canada's energy sector".