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Its actually better for Kinder Morgan than it is for Canada. They are getting a very good value, said paul Bloom role at Bloom Investment counsel Inc, which owns about 300,000 shares in Kinder Morgan Canada. The fact the federal government needed to buy trans mountain to ensure the project goes ahead does not bode well for the industry, said Chris Bloomer, ceo of the canadian Energy pipeline Association. Trans mountain stirred an unusual public fight between neighboring provinces. Alberta threatened to halt crude and fuel shipments to British Columbia, where consumers already pay high gasoline prices, and briefly halted imports of the coastal provinces wines. Alberta will contribute up to C2 billion toward unforeseen costs, payable once the project is complete, premier Rachel Notley said. The contribution will convert into equity in the pipeline. British Columbia premier John Horgan said the province would push ahead with a court case to establish its right to restrict increased shipments of crude oil to its coastal waters. Reporting by david Ljunggren in Ottawa and Rod Nickel in Winnipeg; Additional reporting leah Schnurr in Toronto, nicole mordant in Vancouver and nivedita Bhattacharjee in Bangalore; Writing by Andrea hopkins, david Ljunggren and Rod Nickel; Editing by denny Thomas, jeffrey benkoe and Lisa Shumaker. Our Standards: The Thomson reuters Trust Principles.

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Its a mess out there, said a calgary industry source not authorized to speak publicly. Given it will be stuck in court for a while, i dont think we will see this pipe built anytime soon. Morneau said more spending would be needed to complete the internet expansion, but gave no precise financial details, and stressed he felt the project should be returned to the private sector. Canadas oil sector has been stung in the past year as foreign energy companies retreated amid concerns about the environmental toll, high production costs and a risky regulatory regime. We have agreed to a fair price for our shareholders, said Steve kean, chief executive officer of Kinder Morgan Canada and Kinder Morgan Inc. Cant mess with alberta, kean did not say why he decided to sell rather than absorb the risk of further delays. Kinder Morgan Canada will continue to own the remaining assets, including crude storage, rail terminals and a condensate pipeline, and look to expand. I think the transaction is a win-win.

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Ottawa could also deploy the police and troops to maintain a barrier between protesters and construction workers. Although Ottawa has taken stakes in struggling energy projects, tuesdays announcement marked the first time Ottawa has bought an entire pipeline. It does not intend to own the project for long. There is a very strong business case for this pipeline, prime minister Justin Trudeau told Bloomberg Television, saying the government takeover meant a lot of the legal barriers and a lot of the challenge points actually disappear. Kinder Morgan Canada shares initially jumped as much.5 percent before ending down 3 percent, while the broader Canada share index fell.6 percent. Slideshow (3 Images the move drew immediate criticism from both sides of the political spectrum, and could hurt Trudeaus popularity in the key british Columbia battleground in a 2019 federal election. The decision represents a massive, unnecessary financial burden on Canadian taxpayers, canadian Taxpayers Federation Federal Director Aaron Wudrick said. The government will also offer federal loan guarantees to ensure construction of the expansion continues through the 2018 season as part of the deal with the company, a unit of houston-based Kinder Morgan Inc (. Morneau sidestepped questions about how Ottawa will deal with opposition shakespeare from environmentalists and aboriginal groups, who cite the risk of a catastrophic spill.

Finance minister Bill Morneau said purchasing the pipeline was the only way to ensure that a planned expansion could proceed. The pipeline, running from the oil sands of Alberta to a port in the pacific province of British Columbia, would allow Canadian crude to gain greater access to foreign markets and higher prices. Kinder Morgan Canada gave ottawa until may 31 to come up with reassurances it could press ahead with plans to more than double the capacity of the existing pipeline amid efforts by British Columbia to block construction. The company also faced opposition from environmentalists and aboriginal groups who worried about the pipeline spilling its tar-like heavy oil. When we are faced with an exceptional situation that puts jobs at risk, that puts our international reputation on the line, our government is prepared to take action, morneau told reporters. He said the pipeline purchase provided the federal jurisdiction needed to overcome British Columbias opposition, but gave no details of how this would work. The federal government can in theory step in and disallow any provincial laws that British Columbia might use to block the pipeline, but this provision in the canadian constitution has not been used since the 1940s.

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Abandoning the pact was one of the most consequential decisions of Trumps America first policy, which has led him to quit the global Paris climate accord, come close to a trade war with China and pull out of an Asian-Pacific trade deal. Iran denies long-standing Western suspicions that it tried in the past to develop atomic weapons and says its nuclear energy program has been for peaceful purposes. Officials themselves have said several times that Iran is in technical compliance with the nuclear pact. Renewing sanctions would make it much harder for Iran to sell its oil abroad or use the international banking system. Iran is the Organization of the petroleum Exporting countriess third-largest member, pumping about.8 million barrels per day of crude, or just under 4 percent of global supply. China, india, japan and south Korea buy most of its.5 million bpd business of exports. Irans rial currency plunged to a record low against the.

Dollar in the free market, after sliding for months because of a weak economy, financial difficulties at local banks and heavy demand for dollars among Iranians who feared that renewed. Sanctions would hit Iranian exports hard. Among the few nations to welcome Trumps decision were Israel and saudi Arabia, irans arch-foes in the middle east, regarding it as a political victory. (Graphic showing Irans nuclear facilities /2K9tvrx ) Additional reporting by Steve holland, tim Ahmann, makini Brice, warren Strobel, jonathan Landay, arshad Mohammed, patricia zengerle, david Lawder and Mohammad Zargham in Washington, ayenat Mersie in New York, sybille de la hamaide, john Irish and Tim Hepher. Ottawa/winnipeg (Reuters) - canada will buy kinder Morgan Canada Ltds ( ) Trans mountain pipeline for.5 billion (3.5 billion the government said on tuesday, hoping to save a project that faces formidable political and environmental opposition. Steel pipe to be used in the oil pipeline construction of Kinder Morgan Canada's Trans mountain Expansion Project sit on rail cars at a stockpile site in Kamloops, British Columbia, canada may 29, 2018.

French Finance minister Bruno le maire said the United States should not consider itself the worlds economic policeman. Britain, France and Germany said they would do all they could to protect their business interests in Iran, yet it was unclear how much they can shield firms from. Brussels has a blocking statute at its disposal that bans any eu company from complying with. Sanctions and does not recognize any court rulings that enforce American penalties. But the statute has never been used and is seen by european governments more as a political weapon than a regulation, because its rules are vague and difficult to enforce.

Slideshow (11 Images british Prime minister Theresa mays spokesman made the limits of potential action clear: uk businesses may wish to consider the implications for their business activities in Iran and, where necessary, seek appropriate legal advice. European companies including carmaker psa ( plane manufacturer Airbus ( ) and engineering group siemens ( ) all said they were watching the situation. A senior French diplomat said businesses would ultimately be forced to choose between their Iranian economic interests and their potential. Interests, adding: Generally, that decision is quickly made in favor of the. Hardliner lawmakers in Irans parliament burned. Flag and a symbolic copy of the deal, known officially as the joint Comprehensive plan of Action (jcpoa chanting: death to America! Rouhani, who could be weakened by a blow to Irans economy, struck a more conciliatory tone in a televised speech, saying Iran would negotiate with eu countries, China and Russia. If at the end of this short period, we conclude that we can fully benefit from the jcpoa with the cooperation of all countries, the deal will remain, he said. The Trump administration kept the door open to negotiating another deal, but it is far from clear whether the europeans would pursue that option or be able to win Iran over.

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The Kremlin said Russian President Vladimir Putin was deeply concerned by the withdrawal, the ria news agency said. Merkel said that while the existing deal should not be called into question, there should be discussion of gpa a broader deal that goes beyond. British Foreign Secretary boris Johnson spoke of a follow-on agreement, but said it was up to washington to come up with concrete proposals. Macron said he wanted a broader discussion with all relevant parties on the development of Irans nuclear program after 2025, when key elements of the current deal start to expire, as well as Irans ballistic missile program and wider Middle east issues. Iranian officials will next week meet counterparts from France, britain and Germany. Khamenei appeared skeptical whether they could deliver: I dont trust these three countries. The chances of saving the deal without Washington depend largely on whether international firms are willing and able to keep trading with Iran despite the threat. In a sign of what may be in store, trumps ambassador to berlin tweeted within hours of taking up his post that German businesses should halt activities in Iran at once.

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Region deserves better, le Drian, german Chancellor Angela merkel and the International Atomic Energy Agency (iaea) all said Iran was honoring its commitments under the accord. The region deserves better than further destabilization provoked by American withdrawal, le drian said. Later on resume Wednesday,. Defense secretary jim Mattis sought to allay concerns that Washington had alienated itself from close allies with Trumps decision. The president could not affirm as required that this agreement was being lived up to, mattis told. We now have the opportunity to move forward to address those shortcomings and make it more compelling. The european Union said it would ensure sanctions on Iran remain lifted, as long as Tehran meets its commitments.

that the deal, the signature foreign policy achievement of his Democratic predecessor, barack Obama, did not address Irans ballistic missile program, its nuclear activities beyond 2025 or its role in conflicts in Yemen and Syria. His decision raises the risk of deepening conflicts in the middle east, puts the United States at odds with European diplomatic and business interests and casts uncertainty over global oil supplies. Oil prices rose more than 2 percent, with Brent touching a 3-1/2-year high. In the latest violence, iranian forces on the syrian-held side of the golan heights shelled Israeli army outposts on the strategic plateau but caused no casualties, an Israeli military spokesman said, saying Israel had retaliated. Syrian air defenses confronted Israeli rockets on Syrian territory without specifying the location, syrian state media reported,"ng a military source. Pullout could strengthen hardliners in Iranian politics at the expense of moderates like rouhani who had pinned their hopes on the deal to boost living standards in Iran, with limited success so far. Iranian Supreme leader ayatollah Ali Khamenei, a hardliner, said: Mr Trump, i tell you on behalf of the Iranian people: youve made a mistake. I said many times from the first day: Dont trust America.

On Wednesday, he said Iran would now either negotiate or something will happen. It was not immediately clear what actions he was suggesting would take place. The White house said later that Trump was preparing to impose new sanctions on Iran, perhaps homework as early as next week, but gave no details. Iran has drafted a proportional plan to cope with the. Withdrawal, the official news agency, irna,"d government spokesman Mohammad Baqer Nobakht as saying. He said without elaborating that budgets had been drawn up to handle various scenarios. The fruit of more than a decade of diplomacy, the nuclear agreement was clinched in July 2015 by the United States, France, britain, germany, russia, china and Iran.

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Washington/paris (Reuters) - dismayed European allies sought on Wednesday to salvage the Iran nuclear deal and preserve their Iranian trade after President Donald Trump withdrew the United States from twist the landmark accord and ordered sanctions reimposed on Tehran. The deal is not dead. Theres an American withdrawal from the deal but the deal is still there, french Foreign Minister jean-yves le drian said. But Iranian President Hassan rouhani, a pragmatist who helped engineer the 2015 deal to ease Irans economically crippling isolation, told French counterpart Emmanuel Macron in a phone call that Europe had only a limited opportunity to preserve the pact, the Iranian Students News Agency reported. Must, as quickly as possible, clarify its position and specify and announce its intentions with regard to its obligations, isna"d rouhani as telling Macron. Macron, who like other European leaders had lobbied Trump to keep the agreement that was struck before the republican president took office in January 2017, urged rouhani to adhere to the deal and to consider broader negotiations. Trump said on tuesday he would revive. Economic sanctions, which would penalize foreign firms doing business with Tehran, to undermine what he called a horrible, one-sided deal that should have never, ever been made.

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