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Canada talking to pipeline company about aid to solve crisis

Reuters  |  OTTAWA 

By David Ljunggren

(Reuters) - The and the province of have opened talks with Ltd about possible financial aid to end a crisis over a planned pipeline project, said on Sunday.

Notley spoke after an emergency meeting with and the of British Columbia, who opposes plans to almost triple the capacity of the pipeline from oil-rich to the

"The federal government, along with the government of Alberta, has commenced discussions with Kinder Morgan to establish a financial relationship that will eliminate investor risk," Notley told reporters, but gave no details. Trudeau was due to address the media later on Sunday.

Kinder Morgan Canada, part of Kinder Morgan Inc, is threatening to abandon the project unless it receives sufficient clarity about the path ahead on May 31.

Both the federal and governments have already suggested they could take a stake in the project.

said after the meeting he had not changed his position that the risks of a spill from the pipeline were too great.

Although could invoke emergency powers to ensure the project goes ahead, that would most likely anger voters in and cost the Liberals support in a in October 2019.

But Trudeau is under increasing pressure from the business community and opposition politicians to take action amid fears the dispute could hit already flagging foreign investment.

"There are enough determined parties that a solution will be reached. It won't be easy - it's not an easy issue, none of this is," a said ahead of the meeting.

Horgan wants to refer the matter to the but the Liberals are not interested, saying it is already clear the has jurisdiction over the project.

He also said he would ask the courts in to make clear how much powers the province had to protect the provincial environment. Federal officials complain this is a time-wasting tactic.

(Reporting by David Ljunggren; Editing by and Lisa Shumaker)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, April 15 2018. 23:03 IST