Finance Minister Charles Sousa says Canada is looking at selling $25 billion of its stake in major Canadian oil and natural gas company Enbridge Inc. (Enbridge) to raise money for infrastructure projects and for capital plans.
Sousal said Thursday he wants the government to sell the shares to raise capital in order to expand the pipeline and increase the Canadian economy.
Enbridge operates the Line 3 and Line 6 pipelines that carry oil to market.
“This is a very significant investment in our country,” Sousam said.
“We are not going to have the kind of infrastructure that Canada needs to be able to grow the economy.
It will be a positive thing for the economy.”
Enbridge owns the rights to the oil sands and the Canadian tar sands.
In 2015, Enbridge was ordered to pay more than $10 billion in fines after a federal investigation found the company failed to take measures to protect against climate change.
The company agreed to pay $4.6 billion to settle the charges, which include $1.6bn for environmental violations.
Soudas government said the sale of Enbridge shares will provide more certainty for Canadians and boost the economy by creating jobs and boosting investment.
“In our long-term economic plan, this is a way to create jobs, create investment, and provide a lot of opportunities for Canadian-made goods to move across the country,” he said.
Enlarge/ Canada’s finance minister says Enbridge is looking to sell its stake to raise funds for infrastructure.
SOUSA says Canada will sell Enbridge stock to fund a pipeline expansion and will use the proceeds to boost the Canadian economies growth.
Envirofusion, a company Envisat uses to power its oil and water pipelines, is also looking to get involved in the pipeline project.
Envisate, a natural gas pipeline owned by Enbridge, is currently operating on a partial basis and will operate on full capacity.