Canada talking to pipeline company about aid to solve crisis

But the hit to the economy if the pipeline isn't built could also have devastating effects at the ballot box.

Horgan said Trudeau laid out "legislative and financial measures" to push the project forward, but he did not elaborate. "We will not have these discussions in public, but construction will go ahead".

The Liberals seem convinced only a small number of their 18 B.C. seats are at risk over approving a pipeline, but on Saturday, Quebec's minister for Canadian relations warned Trudeau it would be a mistake for Ottawa to ram through the project with no regard for provincial rules.

The prime minister, after flying back to Canada from Peru to seek to end the impasse, wasn't able to dissuade British Columbia Premier John Horgan from his fight against the C$7.4 billion ($5.9 billion) expansion of the Trans Mountain line linking Alberta's oil sands to the neighboring province's Pacific Coast.

The two premiers met the prime minister, who interrupted a 10-day trip overseas to be in Ottawa, in a bid to settle the dispute.

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"Ideally, we wouldn't be in this situation right now", Trudeau said.

But the pipeline expansion project will be completed, the prime minister vowed today. But he said, "Canadians and people around the world know that we can not choose between what is good for the environment and good for the economy". This opposition is the main reason Kinder Morgan put the brakes on non-essential funding for the project approximately a week ago. The company set a firm deadline of May 31 to have that request fulfilled.

"He has a minority government that's being propped up by a Green Party that is continually lobbying against him and using this as a tool to beat him up with". In January, the province considered halting any shipments of bitumen from Alberta until it could study the effects of heavy oil spills in vital waterways.

Notley has repeatedly expressed exasperation over delays, saying the pipeline has already been through a rigorous regulatory process to be approved.

Trudeau declined to discuss the specifics of Ottawa's proposed financial buy-in, saying only that the feds "have engaged in financial discussions with the Kinder Morgan". Ottawa could buttress that support by enacting emergency legislation that would force the project to move ahead.

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"I believe at this point in the proceeding we had a fair and frank discussion, my obligation is to the people of BC and I'm going to defend that until I'm no longer the Premier". But when the NDP took power past year in B.C., Horgan's government announced a series of measures aimed at halting the project, saying the risk to B.C.'s coast from increased movement of diluted bitumen were too great.

A failure to build pipelines over the last decade has had material economic impacts on the broader economy, analysts suggest.

The lack of pipeline capacity means Canadian crude trades at a discount to the US oil benchmark.

"We can not change everything in our economies overnight", Trudeau said. Canada could lose tens of billions of dollars if new routes to overseas markets aren't developed to shrink a discount on crude from landlocked Alberta.

The prime minister is now attending the Summit of the Americas in Peru, and was at a reception with U.S. Vice-President Mike Pence shortly before the news broke that the U.S. was preparing to launch strikes.

Tax Day extended to April 17th this year
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