KINDER MORGAN SAGA CREATES STRANGE ALLIES

The twisting journey of the Kinder Morgan pipeline expansion has taken its most bizarre turn yet. Straight down the rabbit hole.

Not only is the Alberta government considering investing public money in the $7.4-billion Trans Mountain project, official Opposition leader Jason Kenney thinks that’s a good idea.

The UCP leader is not thrilled with the notion, but he thinks there’s probably no other option.

“I believe there is a need for the federal and provincial governments urgently to pursue with Kinder Morgan some form of financial partnership to diminish the risk to the shareholders,” Kenney said, minutes after Premier Rachel Notley had announced her government might soon be in the pipeline business.

It was as if everybody was in competition with each other Sunday to announce something newsier than everybody else.

First, Kinder Morgan issued a stunning news release saying it was putting the brakes on the Trans Mountain expansion. It pointed the finger of blame squarely at the new NDP government in B.C.

“Since the change in government in June 2017, that government has been clear and public in its intention to use ‘every tool in the tool box’ to stop the project. The uncertainty created by B.C. has not been resolved but instead has escalated into an inter-governmental dispute.”

Kinder Morgan’s chief executive Steve Kean went so far as to suggest the company might scrap the project altogether after May 31 unless the B.C. government stops trying to delay construction.

In response, Notley cancelled her trip to New York to hold an emergency news conference.

“If we have to, Alberta is prepared to do whatever it takes to get this pipeline built, including taking a public position in the pipeline,” said Notley. “Put another way, Alberta is prepared to be an investor in the pipeline. This pipeline will be built.”

As if that wasn’t newsworthy enough, Kenney then upped the ante by saying Ottawa should be investing in the pipeline, too.

It was a statement so out of character with Kenney that you were tempted to check the calendar to make sure this was April 8 and not April Fool’s Day.

When it comes to the tortured journey of Kinder Morgan’s pipeline project, we are well through the looking glass.

We have an NDP government potentially offering financial support to an energy company and a conservative opposition not only applauding but demanding the federal government join in.

Kenney’s reasoning is that the federal government has allowed the markets to falter and now only governments can make things right. “You have a market failure, why? Because the governments are failing to ensure the rule of law.”

Kenney’s argument is similar to Notley’s — Ottawa gave approval to the trans-provincial pipeline in 2016 but failed to push the project through and by its inaction allowed the B.C. government and protesters to seize the initiative and delay construction.

Neither Kenney nor Notley would say how much the government should invest or if it would be by cash or by loan guarantees or something else.

The point of investing would be “to diminish risk to shareholders and to demonstrate to the B.C. New Democrats, the protesters and all the opponents of progress that this will have the full backing of the Crown, of the treasuries of both the Canadian and Alberta governments.”

That quote comes from Kenney, I think. Let me check. When it comes to expressing support for the pipeline and frustration with Ottawa and B.C., Kenney and Notley tend to become one. Yes, that quote is from Kenney.

Here’s one from Notley in reference to the Kinder Morgan headquarters in Texas. “Maybe the government of B.C. feels they can mess with Texas — and who knows, maybe they can. But let me be absolutely clear, they cannot mess with Alberta.”

Notley spoke with Prime Minister Justin Trudeau Sunday and said she is demanding he take “concrete” action to get the pipeline underway but would not say what action they had discussed.

Of course, skeptics will think Kinder Morgan’s announcement Sunday was merely a ploy to spur Ottawa into action.

(The company has yet to hear the outcome of a Federal Court of Appeal ruling on whether the federal government was correct to approve the pipeline project in the first place. What if the court says no? That outcome is doubtful given the project has won every court ruling so far. But still …)

Nevertheless, Kinder Morgan has issued an ultimatum. Notley and Kenney have answered.

And we await “concrete” action from the player that really counts — Ottawa — as our journey down the rabbit hole continues.