VANCOUVER — The Federal Court of Appeal has quashed Ottawa’s approval of the contentious Trans Mountain pipeline expansion.
The decision means the National Energy Board will have to redo its review of Kinder Morgan Canada’s project.
In a written decision, the court says the energy board’s review was so flawed that the federal government could not rely on it as a basis for its decision to approve the expansion.
The court also concludes that the federal government failed in its duty to engage in meaningful consultations with First Nations before giving the green light to the project.
That decision means the government will have to redo part of its consultations with Indigenous groups.
Prime Minister Justin Trudeau’s government approved Trans Mountain in 2016 and was so determined to see it built that it announced plans this spring to buy the pipeline and expansion project for $4.5 billion.
The court combined into one case nearly two dozen lawsuits calling for the energy board’s review to be overturned.
The expansion would triple the capacity of the Trans Mountain pipeline that carries oil from near Edmonton to Metro Vancouver for overseas shipping.
Kinder Morgan shareholders are to vote later today on whether to approve the sale to Canada.
Companies in this story: (TSX:KML)
The Canadian Press