{"id":5881,"date":"2019-01-31T22:26:10","date_gmt":"2019-01-31T22:26:10","guid":{"rendered":"http:\/\/aboriginalbusinessmagazine.com\/?p=5881"},"modified":"2019-01-31T22:27:01","modified_gmt":"2019-01-31T22:27:01","slug":"feds-paid-near-top-dollar-for-trans-mountain-pipeline-spending-watchdog-says","status":"publish","type":"post","link":"https:\/\/aboriginalbusinessmagazine.com\/?p=5881","title":{"rendered":"Feds paid near top dollar for Trans Mountain pipeline, spending watchdog says"},"content":{"rendered":"

By Teresa Wright<\/p>\n

THE CANADIAN PRESS<\/p>\n

OTTAWA- Canada’s parliamentary budget watchdog says the Liberal government paid the “sticker price” when it bought the Trans Mountain pipeline from Kinder Morgan for $4.4 billion.<\/p>\n

Parliamentary Budget Officer Yves Giroux estimates the Trans Mountain pipeline and planned expansion project are worth between
\n$3.6 billion and $4.6 billion.<\/p>\n

This means government’s purchase price of $4.4 billion was at the high end of the project’s total calculated value.<\/p>\n

“If it was a car, we would say they paid sticker price, they didn’t negotiate very much, they didn’t get that many deals or manufacturers<\/p>\n

\"\"<\/a>

Kinder Morgan Canada Trans Mountain route<\/p><\/div>\n

rebates, quite the opposite,” Giroux told reporters Thursday morning.<\/p>\n

Expanding the pipeline’s capacity will come at an estimated cost of $9.3 billion if the project is completed by Dec. 31, 2021, the PBO estimates.<\/p>\n

But should the project encounter any construction delays or cost increases, Giroux says, “then it’s quite clear to us that the government would have overpaid” for the pipeline.<\/p>\n

An existing pipeline connects Alberta’s oilpatch northeast of Edmonton to a terminal in Burnaby, B.C., and its owner Kinder Morgan tried to expand it for years to increase the amount of crude oil it could carry. The federal government bought the pipeline from Kinder Morgan in August after political opposition to expanding the pipeline between Alberta and the B.C. coast gave the company and its investors cold feet. (It announced the purchase price as $4.5 billion but Giroux reported that after final adjustments, the net payment to Kinder Morgan was $4.4 billion.)<\/p>\n

The PBO analysis did note the project could have positive impacts on the country’s economy and on oil prices if the expansion is completed on time and on budget. But the fact the government was the only buyer is a warning sign.<\/p>\n

“It’s a very risky project to have bought something that nobody else in the private sector wanted to acquire. There are lots of retirement or pension plans that like to buy infrastructure of that nature that generate streams of revenues,” Giroux said.<\/p>\n

“From a financial perspective, the risks are significant for taxpayers, but should this get built, it will be a relief for the oil sector in Alberta because it will accelerate the opening of markets for Canadian oil.”<\/p>\n

If the pipeline expansion does not go ahead, the value of the project would drop significantly, and cause the government to lose upwards of $2.5 billion, Giroux added, calling this the worst-case scenario.<\/p>\n

The Federal Court of Appeal struck down Ottawa’s approval of the project in a ruling last August, saying Canada failed to meaningfully consult with First Nations and that the National Energy Board failed to examine how the project would affect marine life.<\/p>\n

Ottawa is now consulting with Indigenous groups and the board has been reviewing the marine effects.<\/p>\n

The board is to have its report ready by Feb. 22.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Teresa Wright THE CANADIAN PRESS OTTAWA- Canada’s parliamentary budget watchdog says the Liberal government paid the “sticker price” when it bought the Trans Mountain pipeline from Kinder Morgan for $4.4 billion. Parliamentary Budget Officer Yves Giroux estimates the Trans Mountain pipeline and planned expansion project are worth between $3.6 billion and $4.6 billion. This …<\/p>\n","protected":false},"author":4,"featured_media":3924,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pmpro_default_level":""},"categories":[32,39],"tags":[],"yoast_head":"\nFeds paid near top dollar for Trans Mountain pipeline, spending watchdog says - Aboriginal Business Magazine<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/aboriginalbusinessmagazine.com\/?p=5881\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Feds paid near top dollar for Trans Mountain pipeline, spending watchdog says - Aboriginal Business Magazine\" \/>\n<meta property=\"og:description\" content=\"By Teresa Wright THE CANADIAN PRESS OTTAWA- Canada’s parliamentary budget watchdog says the Liberal government paid the “sticker price” when it bought the Trans Mountain pipeline from Kinder Morgan for $4.4 billion. Parliamentary Budget Officer Yves Giroux estimates the Trans Mountain pipeline and planned expansion project are worth between $3.6 billion and $4.6 billion. This ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/aboriginalbusinessmagazine.com\/?p=5881\" \/>\n<meta property=\"og:site_name\" content=\"Aboriginal Business Magazine\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AboriginalBusinessMagazine\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-01-31T22:26:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-01-31T22:27:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/aboriginalbusinessmagazine.com\/wp-content\/uploads\/2017\/05\/Pipeline-TMX-anchor-loop-Jasper-2008_web.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Lynda Powless\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@newsattheturtle\" \/>\n<meta name=\"twitter:site\" content=\"@newsattheturtle\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Lynda Powless\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/aboriginalbusinessmagazine.com\/?p=5881#article\",\"isPartOf\":{\"@id\":\"https:\/\/aboriginalbusinessmagazine.com\/?p=5881\"},\"author\":{\"name\":\"Lynda Powless\",\"@id\":\"https:\/\/aboriginalbusinessmagazine.com\/#\/schema\/person\/3664e73942dc1372354a65437d34fa77\"},\"headline\":\"Feds paid near top dollar for Trans Mountain pipeline, spending watchdog says\",\"datePublished\":\"2019-01-31T22:26:10+00:00\",\"dateModified\":\"2019-01-31T22:27:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/aboriginalbusinessmagazine.com\/?p=5881\"},\"wordCount\":494,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/aboriginalbusinessmagazine.com\/#organization\"},\"articleSection\":[\"Business\",\"ticker\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/aboriginalbusinessmagazine.com\/?p=5881#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/aboriginalbusinessmagazine.com\/?p=5881\",\"url\":\"https:\/\/aboriginalbusinessmagazine.com\/?p=5881\",\"name\":\"Feds paid near top dollar for Trans Mountain pipeline, spending watchdog says - Aboriginal Business Magazine\",\"isPartOf\":{\"@id\":\"https:\/\/aboriginalbusinessmagazine.com\/#website\"},\"datePublished\":\"2019-01-31T22:26:10+00:00\",\"dateModified\":\"2019-01-31T22:27:01+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/aboriginalbusinessmagazine.com\/?p=5881#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/aboriginalbusinessmagazine.com\/?p=5881\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/aboriginalbusinessmagazine.com\/?p=5881#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/aboriginalbusinessmagazine.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Feds paid near top dollar for Trans Mountain pipeline, spending watchdog says\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/aboriginalbusinessmagazine.com\/#website\",\"url\":\"https:\/\/aboriginalbusinessmagazine.com\/\",\"name\":\"Aboriginal Business Magazine\",\"description\":\"Your source for Aboriginal Business News\",\"publisher\":{\"@id\":\"https:\/\/aboriginalbusinessmagazine.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/aboriginalbusinessmagazine.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/aboriginalbusinessmagazine.com\/#organization\",\"name\":\"Aboriginal Business Magazine\",\"url\":\"https:\/\/aboriginalbusinessmagazine.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/aboriginalbusinessmagazine.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/aboriginalbusinessmagazine.com\/wp-content\/uploads\/2015\/01\/AB_logo2.png\",\"contentUrl\":\"https:\/\/aboriginalbusinessmagazine.com\/wp-content\/uploads\/2015\/01\/AB_logo2.png\",\"width\":300,\"height\":149,\"caption\":\"Aboriginal Business Magazine\"},\"image\":{\"@id\":\"https:\/\/aboriginalbusinessmagazine.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/AboriginalBusinessMagazine\/\",\"https:\/\/twitter.com\/newsattheturtle\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/aboriginalbusinessmagazine.com\/#\/schema\/person\/3664e73942dc1372354a65437d34fa77\",\"name\":\"Lynda Powless\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/aboriginalbusinessmagazine.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/7e7951732a3d91daf1274e121f087774?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/7e7951732a3d91daf1274e121f087774?s=96&d=mm&r=g\",\"caption\":\"Lynda Powless\"},\"url\":\"https:\/\/aboriginalbusinessmagazine.com\/?author=4\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Feds paid near top dollar for Trans Mountain pipeline, spending watchdog says - Aboriginal Business Magazine","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/aboriginalbusinessmagazine.com\/?p=5881","og_locale":"en_US","og_type":"article","og_title":"Feds paid near top dollar for Trans Mountain pipeline, spending watchdog says - Aboriginal Business Magazine","og_description":"By Teresa Wright THE CANADIAN PRESS OTTAWA- Canada’s parliamentary budget watchdog says the Liberal government paid the “sticker price” when it bought the Trans Mountain pipeline from Kinder Morgan for $4.4 billion. Parliamentary Budget Officer Yves Giroux estimates the Trans Mountain pipeline and planned expansion project are worth between $3.6 billion and $4.6 billion. This ...","og_url":"https:\/\/aboriginalbusinessmagazine.com\/?p=5881","og_site_name":"Aboriginal Business Magazine","article_publisher":"https:\/\/www.facebook.com\/AboriginalBusinessMagazine\/","article_published_time":"2019-01-31T22:26:10+00:00","article_modified_time":"2019-01-31T22:27:01+00:00","og_image":[{"width":1000,"height":600,"url":"https:\/\/aboriginalbusinessmagazine.com\/wp-content\/uploads\/2017\/05\/Pipeline-TMX-anchor-loop-Jasper-2008_web.jpg","type":"image\/jpeg"}],"author":"Lynda Powless","twitter_card":"summary_large_image","twitter_creator":"@newsattheturtle","twitter_site":"@newsattheturtle","twitter_misc":{"Written by":"Lynda Powless","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/aboriginalbusinessmagazine.com\/?p=5881#article","isPartOf":{"@id":"https:\/\/aboriginalbusinessmagazine.com\/?p=5881"},"author":{"name":"Lynda Powless","@id":"https:\/\/aboriginalbusinessmagazine.com\/#\/schema\/person\/3664e73942dc1372354a65437d34fa77"},"headline":"Feds paid near top dollar for Trans Mountain pipeline, spending watchdog says","datePublished":"2019-01-31T22:26:10+00:00","dateModified":"2019-01-31T22:27:01+00:00","mainEntityOfPage":{"@id":"https:\/\/aboriginalbusinessmagazine.com\/?p=5881"},"wordCount":494,"commentCount":0,"publisher":{"@id":"https:\/\/aboriginalbusinessmagazine.com\/#organization"},"articleSection":["Business","ticker"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/aboriginalbusinessmagazine.com\/?p=5881#respond"]}]},{"@type":"WebPage","@id":"https:\/\/aboriginalbusinessmagazine.com\/?p=5881","url":"https:\/\/aboriginalbusinessmagazine.com\/?p=5881","name":"Feds paid near top dollar for Trans Mountain pipeline, spending watchdog says - Aboriginal Business Magazine","isPartOf":{"@id":"https:\/\/aboriginalbusinessmagazine.com\/#website"},"datePublished":"2019-01-31T22:26:10+00:00","dateModified":"2019-01-31T22:27:01+00:00","breadcrumb":{"@id":"https:\/\/aboriginalbusinessmagazine.com\/?p=5881#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/aboriginalbusinessmagazine.com\/?p=5881"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/aboriginalbusinessmagazine.com\/?p=5881#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/aboriginalbusinessmagazine.com\/"},{"@type":"ListItem","position":2,"name":"Feds paid near top dollar for Trans Mountain pipeline, spending watchdog says"}]},{"@type":"WebSite","@id":"https:\/\/aboriginalbusinessmagazine.com\/#website","url":"https:\/\/aboriginalbusinessmagazine.com\/","name":"Aboriginal Business Magazine","description":"Your source for Aboriginal Business News","publisher":{"@id":"https:\/\/aboriginalbusinessmagazine.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/aboriginalbusinessmagazine.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/aboriginalbusinessmagazine.com\/#organization","name":"Aboriginal Business Magazine","url":"https:\/\/aboriginalbusinessmagazine.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/aboriginalbusinessmagazine.com\/#\/schema\/logo\/image\/","url":"https:\/\/aboriginalbusinessmagazine.com\/wp-content\/uploads\/2015\/01\/AB_logo2.png","contentUrl":"https:\/\/aboriginalbusinessmagazine.com\/wp-content\/uploads\/2015\/01\/AB_logo2.png","width":300,"height":149,"caption":"Aboriginal Business Magazine"},"image":{"@id":"https:\/\/aboriginalbusinessmagazine.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/AboriginalBusinessMagazine\/","https:\/\/twitter.com\/newsattheturtle"]},{"@type":"Person","@id":"https:\/\/aboriginalbusinessmagazine.com\/#\/schema\/person\/3664e73942dc1372354a65437d34fa77","name":"Lynda Powless","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/aboriginalbusinessmagazine.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/7e7951732a3d91daf1274e121f087774?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/7e7951732a3d91daf1274e121f087774?s=96&d=mm&r=g","caption":"Lynda Powless"},"url":"https:\/\/aboriginalbusinessmagazine.com\/?author=4"}]}},"_links":{"self":[{"href":"https:\/\/aboriginalbusinessmagazine.com\/index.php?rest_route=\/wp\/v2\/posts\/5881"}],"collection":[{"href":"https:\/\/aboriginalbusinessmagazine.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aboriginalbusinessmagazine.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aboriginalbusinessmagazine.com\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/aboriginalbusinessmagazine.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5881"}],"version-history":[{"count":2,"href":"https:\/\/aboriginalbusinessmagazine.com\/index.php?rest_route=\/wp\/v2\/posts\/5881\/revisions"}],"predecessor-version":[{"id":5883,"href":"https:\/\/aboriginalbusinessmagazine.com\/index.php?rest_route=\/wp\/v2\/posts\/5881\/revisions\/5883"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aboriginalbusinessmagazine.com\/index.php?rest_route=\/wp\/v2\/media\/3924"}],"wp:attachment":[{"href":"https:\/\/aboriginalbusinessmagazine.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aboriginalbusinessmagazine.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aboriginalbusinessmagazine.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}