"Something had to happen", Bloomer said of delays blamed on opposition by British Columbia's provincial government, municipalities, Indigenous groups and individual protesters.
"We have agreed to a fair price for our shareholders", said Steve Kean, chief executive officer of Kinder Morgan Canada and Kinder Morgan Inc.
"I'm hoping the federal government has had a change of heart (with regards to the need for oil pipelines in Canada)", he said.
Alberta Premier Rachel Notley said the Canadian economy needs access to foreign markets and without projects like Trans Mountain, the economy is out as much as $30 million (USD) per day.
Kinder Morgan had issued a May 31 ultimatum for clarification on the status of the project, which is now mired in legal challenges raised by B.C. Premier John Horgan and also facing Lower Mainland opposition with protests in Burnaby and Vancouver.
"We are looking for new owners and we're working with Kinder Morgan to find a new owner or owners, but we will proceed with that transaction when it's in the best interest of Canadians and when we feel there's an appropriate value", Daniel Lauzon, a spokesman for Finance Minister Bill Morneau, said in a telephone interview.
A "No Pipeline No Tankers" sign at a protest held in Victoria in March opposing the Trans Mountain pipeline expansion project. But the deal means investors will no longer be able to share in the financial upside of the expansion project. Scotiabank reissued an outperform rating and issued a C$23.00 price target on shares of Kinder Morgan Canada in a research note on Monday, April 16th. It will also own a terminal in Vancouver and the Cochin Pipeline system which transports light condensate from the United States to Fort Saskatchewan, just northeast of Edmonton.
The government will also offer federal loan guarantees to ensure construction of the expansion continues through the 2018 season as part of the deal with the company, a unit of Houston-based Kinder Morgan Inc (KMI.N).
Carr said "conversations will happen relatively" soon toward a resale.
Kinder Morgan Canada stock fell again Wednesday, continuing the post-deal trend that saw it close almost three per cent lower at $16.10 on Tuesday.
Analysts were less than enthusiastic about the sale.
The move drew immediate criticism from both sides of the political spectrum, and could hurt Trudeau's popularity in the key British Columbia battleground in a 2019 federal election. The goal is to have a new buyer in place for the vote, and to potentially turn a profit, they said.
"The federal government has set a precedent that it will nationalize projects of significant importance rather using the rule of law and prior regulatory approvals to push a project forward under private ownership", its analysts said in a report.
Kinder Morgan Canada gave Ottawa until May 31 to come up with reassurances it could press ahead with plans to more than double the capacity of the existing pipeline amid efforts by British Columbia to block construction.