The federal government is prepared to compensate Kinder Morgan for losses and expenses due to delays on the Trans Mountain pipeline expansion project, and is working toward an agreement by the May 31 deadline set by the company.
Finance Minister Bill Morneau told reporters Wednesday morning the federal government will indemnify the project against any financial loss caused by “unnecessary delays” and “politically-motivated investment risks” from the B.C. provincial government. That indemnity against financial loss would be available for another party who wishes to take over should Kinder Morgan decide to pull out of the project.
“This indemnification would allow Kinder Morgan to finish what they started, what they received federal and B.C. approval to do,” he said. “We understand that a private company would want to maximize their profit. Likewise, we have a responsibility to act in the best interests of all Canadians.
“If Kinder Morgan isn’t interested in building the project, we think plenty of investors would be interested in taking on this project, especially knowing the federal government believes it’s in the best interest of Canadians, and is willing to provide indemnity to make sure that it gets done.”
Kinder Morgan cannot resolve differences between governments, Morneau said, so it is the federal government’s responsibility to consider ways to resolve them and address risks.
The federal government has been working with Kinder Morgan to “remove uncertainty,” he said, and the ongoing negotiations between the two parties will remain confidential.
