Saskatchewan Premier Scott Moe said he remains cautiously optimistic about the future of Kinder Morgan’s Trans Mountain pipeline expansion following the federal government’s decision to buy the project.
Federal Finance Minister Bill Morneau announced Ottawa would buy the project for $4.5 billion from Kinder Morgan.
Moe hopes this plan works, but has some reservations, including British Columbia’s reference question that is before the courts seeing if they can apply permits to entities looking to increase the flow of bitumen through the province.
READ MORE: Ottawa inks deal to buy Trans Mountain pipeline project for $4.5B
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The Saskatchewan premier also wonders what kind of message this sends to international business communities as the Texas-based Kinder Morgan was ready to build the federally approved pipeline.
Despite these questions, Moe hopes that completing the pipeline will be able to close the oil price differential between Canada and the United States. Canadian oil is sold at a lower price than American oil due to difficulties in accessing international markets.
“With the nationalization of this pipeline I would simply say I hope this works and I hope that the construction of this pipeline starts. I hope it starts to narrow the differential that we’re experiencing here in this province. We must never forget, that last year the differential cost us about $2.6 billion to our economy, to our industry here in the province of Saskatchewan,” Moe said.
Moe said Saskatchewan will not offer financial backing to help complete the project because it is Alberta oil, not Saskatchewan oil that will be moving through Trans Mountain.
READ MORE: Saskatchewan to apply to participate in B.C. case to restrict increased bitumen flows
Alberta and B.C. have been the two provinces at the centre of the pipeline dispute. Saskatchewan Opposition Leader Ryan Meili said focusing on this federal issue is the premier continuing to ignore issues in Saskatchewan.