OTTAWA (Reuters) - Canadian Prime Minister Justin Trudeau will break off a foreign trip to hold an emergency meeting with the premiers of two provinces locked in a worsening dispute over an oil pipeline, officials said on Thursday.
The unexpected development is a sign of the pressure building on Trudeau to solve a problem that could turn into a constitutional crisis.
The federal Liberals are pitted against the Pacific province of British Columbia, which opposes plans by Kinder Morgan Canada to almost triple the capacity of its Trans Mountain pipeline from Alberta to the west coast.
Ottawa, which approved the project in 2016, insists it has jurisdiction. The British Columbia government disagrees, citing the risk of a spill.
Kinder Morgan Canada, fed up with the delays, is threatening to walk away unless the dispute is settled by May 31.
Trudeau left on Thursday for a nine-day trip, starting with a summit in Peru on Friday and Saturday. He has invited Alberta Premier Rachel Notley - who backs the pipeline - and British Columbia Premier John Horgan to come to Ottawa on Sunday. Trudeau will resume his international trip after the meeting.
Both premiers said they would attend the Ottawa session but made clear they were sticking to their positions.
“This likely is not going to be the end of the story. It’s a first step,” a senior government official told Reuters, saying Trudeau would outline the various financial, regulatory and legal options for handling the crisis.
It is the first time in decades that different levels of government in Canada have argued so openly over resources. Energy industry analysts said that unless the dispute is settled, Canada would become a much less attractive place for foreign investment.
“I think there’s a hope we break the deadlock and the prime minister can get beyond the political public posturing,” said the official, who was not authorized to speak to the media and requested anonymity. “This is impacting market confidence and investor confidence.”
https://ca.reuters.com/article/domesticNews/idCAKBN1HJ2P7-OCADN
The unexpected development is a sign of the pressure building on Trudeau to solve a problem that could turn into a constitutional crisis.
The federal Liberals are pitted against the Pacific province of British Columbia, which opposes plans by Kinder Morgan Canada to almost triple the capacity of its Trans Mountain pipeline from Alberta to the west coast.
Ottawa, which approved the project in 2016, insists it has jurisdiction. The British Columbia government disagrees, citing the risk of a spill.
Kinder Morgan Canada, fed up with the delays, is threatening to walk away unless the dispute is settled by May 31.
Trudeau left on Thursday for a nine-day trip, starting with a summit in Peru on Friday and Saturday. He has invited Alberta Premier Rachel Notley - who backs the pipeline - and British Columbia Premier John Horgan to come to Ottawa on Sunday. Trudeau will resume his international trip after the meeting.
Both premiers said they would attend the Ottawa session but made clear they were sticking to their positions.
“This likely is not going to be the end of the story. It’s a first step,” a senior government official told Reuters, saying Trudeau would outline the various financial, regulatory and legal options for handling the crisis.
It is the first time in decades that different levels of government in Canada have argued so openly over resources. Energy industry analysts said that unless the dispute is settled, Canada would become a much less attractive place for foreign investment.
“I think there’s a hope we break the deadlock and the prime minister can get beyond the political public posturing,” said the official, who was not authorized to speak to the media and requested anonymity. “This is impacting market confidence and investor confidence.”
https://ca.reuters.com/article/domesticNews/idCAKBN1HJ2P7-OCADN
