The Canadian government has announced it will buy Kinder Morgan's Trans Mountain pipeline project for C$4.5bn ($3.5bn US) - but does not intend to be the long-term owner of the project, which has faced fierce environmental opposition.
The deal for the bulk of the Canadian subsidiary of Texas-based Kinder Morgan Sale proceeds are about $12 per share after capital gains taxes, he said.
Bill Morneau, Minister of Finance, said that this is an investment in Canada's future. He described the $4.5 billion buy-out as a "fair price for Canadians", and said the commercial agreement is a "sound investment opportunity".
He says Kinder Morgan will proceed with its plan to twin the pipeline this summer while the sale is completed.
Both the federal government and the provincial government of Alberta, which would be the main beneficiary of the expansion, have made it abundantly clear they are behind the project, and yet neither has managed to budge B.C.'s government, even with the threat-by Alberta-to turn the current oil tap off.
Kinder Morgan set the deadline in part due to frustrations with delays caused by the British Columbia government, which is concerned about possible oil spills.
It's a "bittersweet moment" that the federal government was required to take out a private sector company to salvage a project, said McConaghy on CBC Radio's Edmonton AM Tuesday.
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Alberta has also agreed to provide funding for any unexpected costs that arise during construction.
But the pipeline faces legal and regulatory challenges from BC that has delayed construction of the project.
Canada loses $15 billion every year on the sale of oil because the USA remains its only export customer, resulting in a lower price, Prime Minister Justin Trudeau argues.
Analysts have said China is eager to get access to Canada's oil, but largely gave up hope that a pipeline to the Pacific coast would be built.
The company suspended all non-essential construction on the project in April, citing opposition from the B.C. government that put the viability of the pipeline in question.
Buying the pipeline outright had become increasingly likely after Prime Minister Justin Trudeau first pledged only to backstop it.
Editor's note: This article was updated with additional quotes and background at 11:05 a.m. on May 29, 2018.