If Canada indeed ends up buying the pipeline, it will be exclusively to ensure its capacity can be tripled, allowing Canada to find new export markets for its oil resources, Morneau said - and that ultimately, the long-term goal will be to find a private-sector buyer to take it over.
"I believe that the government's idea is to make Trans Mountain the last pipeline that's built", he said.
Kinder Morgan has estimated the expansion would cost $7.4 billion, of which $1.1 billion has already been spent, but it admits that estimate is out of date and doesn't take into account delays caused by ongoing court challenges and permitting in B.C.
"So I am blowing the whistle on this awful investment and on Prime Minister Justin Trudeau for brokering this bad deal".
"Our government is determined to defend British Columbia's interests within the rule of law and in the courts", he said.
The pipeline purchase would also transfer to the federal government all of the people involved in building the expansion, including project managers and construction workers.
If used, the backstop will be payable upon completion of the expansion and Alberta will receive equity in the completed project.
Nationalization was a necessary step, since Kinder Morgan during the construction of the second branch of the pipeline is faced with the powerful opposition of the government of British Columbia promised to sue Canada, if Ottawa can't solve this issue.
Kean said Kinder Morgan will continue to manage its Western Canadian portfolio that includes crude oil terminal facilities in Edmonton, an import/export resources shipping terminal in Vancouver and the Cochin pipeline system that carries light condensate from Washington state to blend with raw bitumen from the oil sands for shipping from northern Alberta.
That allows me to have more candid discussions with the owners of the pipeline than I would have when they were shareholders of a Texas-based company, he said.
"Good jobs and meaningful climate action can, and must, go hand in hand", Alberta Premier Rachel Notley said. "This kind of project belongs in the private sector, and it should never have left it".
"The federal government has responded and that's their business".
"Our Canadian employees and contractors have worked very hard to advance the project to this critical stage, and they will now resume work in executing this important Canadian project", said Kean. "That certainty is absolutely critical".
The Alberta government also has pledged a contingency fund of up to around $1.5 billion to provide emergency funds to the project if unforeseen circumstances arise.
As part of the planned takeover, existing profit sharing or other agreements established between Kinder Morgan and 32 indigenous groups in British Columbia and Alberta will be maintained under whatever transactions are negotiated.
"This is an extremely sad day for Canadian taxpayers", Conservative Leader Andrew Scheer said during question period.
Justin Trudeau is forcing Canadians to pay for his failure to support the men and women of Canada's energy sector.