The Financial Post reports in its Saturday, July 27, edition that Prime Minister Justin Trudeau's government is likely to stall the sale of the Trans Mountain oil pipeline until after Canada's national election in 2025. A Bloomberg dispatch to the Post reports that oil is now flowing through the line. The Bank of Canada has estimated the line will add about one-quarter of a percentage point to gross-domestic-product growth in the second quarter. Preparing it for a sale before the election, however, is proving complicated, and reasons to delay are piling up. Mr. Trudeau and Finance Minister Chrystia Freeland have not made any final decision on the timing of an auction, cautioned officials, speaking on condition they not be identified.
The government has promised to grant equity to dozens of indigenous groups in Western Canada, and that process is moving slowly. There is also a regulatory battle over how much Trans Mountain charges oil companies to ship crude on the line, costs that it wants to pass on to its customers. Major oil producers including Cenovus Energy and Suncor Energy are pushing back. Until final tolls are decided, potential buyers will not have certainty on the pipeline's long-term revenue.
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