Kinder Morgan just told its shareholders how it persuaded the Trudeau government to pay billions for a pipeline no one else wanted to buy
The Trudeau government made financial overtures to Texas energy giant Kinder Morgan more than a month before the pipeline operator issued an ultimatum that drove Ottawa to offer billions to take over the troubled Trans Mountain project, according to a new document released by the company this week.
These previously secret overtures began even though the government had made it clear, during its early negotiations with the Texas multinational, that it didn’t want to buy the pipeline and oil tanker expansion project, says the document, a proxy for shareholders that was filed with the United States Securities and Exchange Commission on Tuesday.
The secret meetings between Trudeau’s office, federal officials & Kinder Morgan took place several weeks before the prime minister publicly announced he had “instructed” the finance minister to “initiate” formal financial talks, reports @mikedesouzaIf built, Kinder Morgan’s Trans Mountain expansion would increase the capacity of heavy oil and other petroleum product shipments from Alberta to Burnaby in metro Vancouver.
The proxy document highlights how far the federal government was willing to go to stop the company from abandoning its plans, starting with a trip to Houston early in 2018.
At the time, former natural resources minister Jim Carr and his chief of staff Zoë Caron travelled to the Texas city on March 6, 2018 and offered a “resolution” to concerns that the company and its shareholders were about to lose billions of dollars if they continued spending money on the project without guarantees they could complete or even operate it under tough provincial regulations.
At that point, the company had already spent about $1.1 billion on the expansion, and was expecting to lose all of that money until the government came through with its $4.5 billion offer to purchase the existing Trans Mountain pipeline, some related assets and the rights to build the expansion.
An international news agency, Reuters, has described the government offer as a “billion-dollar bailout” for the Texas company. – National Observer
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…The Trudeau government made financial overtures to Texas energy giant Kinder Morgan more than a month before the pipeline operator issued an ultimatum that drove Ottawa to offer billions to take over the troubled Trans Mountain project….
Hmmm….Interesting. I wonder if the financial overtures had anything to do with the ultimatum being issued?
…An international news agency, Reuters, has described the government offer as a “billion-dollar bailout” for the Texas company…
Actually, its a 4.5 billion dollar bailout.
Its just money, right? If the government needs more they either borrow it, putting unborn Canadians deeper into debt or they raise the taxes of us, the great unwashed.
Running a government is that easy.