More than 200 protesters - including NDP MP Kennedy Stewart and Green Party Leader Elizabeth May - have already been arrested for violating a court-ordered injunction to stay a certain distance away from Kinder Morgan's marine terminal in Burnaby, B.C. Many more protests are expected as anger at the government's pipeline purchase exploded this week.
Finance Minister Bill Morneau announced Ottawa's plan to buy the pipeline for $4.5 billion.
Kinder Morgan Canada Ltd (TSE:KML)'s share price reached a new 52-week high during mid-day trading on Tuesday.
The pipeline connects oil sands facilities near Edmonton, Alberta, to tanks in Burnaby, near Vancouver on Canada's west coast.
It also stated increasing pressure on current pipeline infrastructure is pushing more companies to utilize trucks and rail for product transportation.
Earlier this month, her government passed a law giving Alberta the power to limit oil and gas exports to other regions, which could cause gasoline and jet fuel prices to spike in B.C.
A claim in the federal Court of Appeal alleges there hasn't been adequate consultation with First Nations.
Canada's government is intervening in the conflict over the construction of Kinder Morgan's Trans Mountain Expansion Project with an unusual decision.
In theory, this compromise seemed doable. The Trans Mountain expansion was conceived at a time when petroleum prices were hitting record highs and before shale oil had become an important source of energy.
Energy East would have been a job-creation bonanza, expected to create nearly 3,720 jobs during the construction phase and 97 permanent jobs once the pipeline was built.
Companies that have already invested heavily in the oilsands will continue to mine bitumen at nearly any price in an effort to offset their fixed costs.
2006 - 2008: The Anchor Loop project adds 160 kilometres of new pipeline through Jasper National Park and Mount Robson Provincial Park between Hinton, Alta., and Hargreaves, B.C. The extension includes 13 new pump stations and modifications to existing stations, increasing capacity from 260,000 bpd to 300,000 bpd. Since then, the Keystone XL pipeline, which is meant to take heavy oil from Alberta to Texas, has been approved.
"Trudeau had promised during the election that he would create a new environmental process that would protect Indigenous rights and that the Kinder Morgan project would be included and sent back to be done through the new process, and on both those counts he's failed completely", he said. National Bank Financial set a C$17.00 price target on shares of Kinder Morgan Canada and gave the stock a "sector perform" rating in a research report on Wednesday.
The Alberta government may also be called on to pony up an unspecified amount of money, Morneau said. We just know how politics works.
The rest are yet to be submitted, which will now be the job of the investors that the federal government is seeking to sell the project on.
In fact, the problems facing pipelines today are much deeper.