Ottawa Reviews Its Long-Term Plan for the Trans Mountain Pipeline
Ottawa is reviewing how it will eventually sell the publicly owned Trans Mountain pipeline.
Finance Minister François-Philippe Champagne said the government plans to "modernize our approach to public assets," including the pipeline, at a Sept. 22 news conference on Parliament Hill. The Globe and Mail
Champagne would not say whether Ottawa still plans to sell the line or keep it given its revenues. His spokesperson, John Fragos, said the government has no intention of remaining the long-term owner and the long-run plan is still to sell.
Fragos said the government will explore options as they relate to TMX under its plan to modernize its approach to public infrastructure, and that modernizing will vary from project to project. Champagne pointed to federal plans for airports as an example but did not explicitly say whether that airports plan will apply to Trans Mountain.
Energy Minister Tim Hodgson previously told Bloomberg News the government will not sell the Trans Mountain pipeline until work to maximize its capacity is completed, expected in 2028. Trans Mountain Corp. Chief Executive Mark Maki has said the federal government should wait three to five years to sell the pipeline system. Financial Post
Trans Mountain is the only system shipping crude oil to the West Coast. The proposed West Coast Oil Pipeline corridor will largely follow the existing Trans Mountain corridor. Expansion of the pipeline cost the government $34-billion. Since oil started flowing through the expanded pipeline in 2024, it has pumped $2.6-billion into federal coffers. The pipeline was not included in the prospectus at last week's Canada Investment Summit.
Ottawa acquired the system in 2018. In May 2018, the government announced it had negotiated a fair-market price to purchase the pipeline and its related assets. It reached a financial agreement with Kinder Morgan to purchase the Trans Mountain Pipeline. Government of Canada
While revisiting its long-term approach to off-loading Trans Mountain, the federal government is moving ahead with a smaller-than-expected equity offer, a chance to buy an ownership stake, to Indigenous groups.
The broader context here is timing and value. Holding a Crown asset that is generating cash changes the fiscal calculation around selling. Moving more oil before a sale can support the price. It also delays proceeds and prolongs Crown operation and commercial risk. Selling part to Indigenous owners first reshapes the ownership table before any broader deal. It can broaden consent and share revenue. It can also complicate pricing and governance for a later buyer. Pointing to airports without committing TMX to that model keeps the definition of modernization open. Watch the capacity work, the terms of the Indigenous offer, and whether Ottawa defines modernization as management of the asset or exit from it.
