Premier supports federal pipeline buyout:
Pipeline purchase shows Ottawa values oil and gas development: premier
Premier Dwight Ball is happy to see the federal government step in and buy the Kinder Morgan pipeline, but tossed cold water on any notion of the federal government taking Muskrat Falls off the provincial government’s hands.
On Tuesday, Federal Finance Minister Bill Morneau announced the $4.5-billion purchase of the Kinder Morgan assets at the Trans Mountain pipeline project. The pipeline would see bitumen from Alberta shipped to the Westridge marine terminal in Burnaby, B.C.
While Prime Minister Justin Trudeau and Alberta Premier Rachel Notley have been adamant that the project is good for the entire country, B.C. Premier Joe Horgan and indigenous groups in B.C. have been opposed to the project for months.
Ball says it’s important for Ottawa to invest in oil and gas infrastructure to make sure those future projects can happen no matter what.
“It’s important for us – what’s good for Alberta … also works for Newfoundland and
Labrador.”
Ball says the move out west is a sign that the federal government is willing to work and take down barriers to getting oil and gas projects off the ground.
“The message that I see in all of this is the federal government recognizes the oil and gas
industry and its importance in resource development. They’re willing to get involved,” said Ball.
A billion-dollar project that’s unpopular in parts of Canada, amid concerns raised by indigenous groups sounds … familiar.
But just because the federal government stepped in to buy the Kinder Morgan Assets doesn’t mean a cheque for Muskrat Falls is going to come from Ottawa anytime soon, according to Ball.
“We’ve seen the federal government involved in the environmental assessment and so on. They’ve been in on two occasions now with loan-guarantees, which meant a savings of billions of dollars to the people of the province over the life of the project,” said Ball.
“We have not had those discussions. It seems today that with this announcement and the federal government getting involved is they recognize how important natural resource development is for all of Canada — not just for the provinces where the projects are occurring.”
All that said, Ball says it’s important the situation out west is sorted out to make sure international natural-resourcebased companies aren’t scared away from investing in Canada.
“It’s a global competition that we’re facing now. We must put in place the environment where people can come in, in a very clear, stable political environment that they’re willing to invest in provinces like Newfoundland and Labrador,” said Ball.
“That is how we pay for the services that we provide to our province.”