Canadian Finance Minister Bill Morneau has announced the government is buying the Trans Mountain Pipeline system and the expansion project (TMEP) pipeline for C$4.5 billion ($3.46 billion). The government plans to take ownership of the pipeline temporarily until a new owner can be found.
The seller is Kinder Morgan, which also agreed to work with the government to find a third-party buyer through July 22. The parties expect to close the transaction late in the third quarter or early in the fourth quarter.
As part of the agreement, the government will fund the resumption of TMEP planning and construction work by guaranteeing TMEP’s advances under a separate federal recourse credit facility until the transaction closes.
