Alberta supports federal pipeline purchase
In a major step forward for $lbertans and all Canadians, the *overnment of Canada, with support from the *overnment of $lberta, has purchased the Trans 0ountain 3ipeline and associated assets.
This deal, which is subject to approval by .inder 0organ shareholders, puts people to work building the pipeline immediately. The Trans 0ountain 3ipeline expansion is expected to generate billions of dollars in economic activity and government revenue in $lberta. “When .inder 0organ issued its deadline on $pril , the *overnment of $lberta committed that the deadline would be met. Today, we are delivering on that commitment. We are pleased to have worked with the federal government to ensure construction resumes, certainty is increased and $lbertans and all Canadians enjoy the many benefits of having this project go forward. There is more work to do, but we will not stop until the job is done.´ 5achel 1otley, 3remier $lberta is providing support in the form of a backstop that would be called upon in unforeseen circumstances. $lberta’s contribution would range from zero to a maximum of billion, and would be payable only upon completion of the project. If $lberta’s backstop is called upon, $lberta will receive equity in the completed project.
In addition to providing financial certainty to the project, federal ownership of the project shields the Trans 0ountain 3ipeline from the political risk to which the project had previously been subjected. Existing profit sharing or other agreements established by .inder 0organ and Indigenous groups will be maintained under this new arrangement. Details of $lberta support for the Trans 0ountain Expansion 3roject The Trans 0ountain Expansion 3roject will help create tens of thousands of jobs, ensure Canadians get fair value for our oil in international markets and help keep us moving forward on our climate change commitments. This will mean more money for health care, schools, roads and public transit across Canada. *etting Canadian energy to tidewater through the expansion of this pipeline will help $lbertans and Canadians. The *overnment of $lberta has agreed to provide support to the *overnment of Canada in its acquisition of the Trans 0ountain Expansion 3roject and associated assets. This support was instrumental to ensuring the continued construction and timely completion of the project. In providing the support, $lberta was driven by three primary objectives ± construction resumes immediately, ensuring the timely completion of the project, and ensuring that $lbertans get value for any support provided by the province. 8nder the agreement, $lberta commits to provide a backstop to the *overnment of Canada to help cover costs arising from unforeseen circumstances. $lberta’s contribution to costs could range from zero to a maximum of billion.
If $lberta’s backstop is ultimately required, it would share eligible costs with Canada, up to a maximum contribution of billion. $lberta’s contribution would be payable to Canada only upon successful completion of the project. In exchange for its contribution, $lberta would receive equity in the completed project commensurate with its contribution.