OTTAWA—In a bid to protect Canada’s reputation as an attractive destination for energy investment, the Liberal government pledged Wednesday to cover Kinder Morgan Inc.’s losses on the Trans Mountain pipeline expansion caused by British Columbia’s efforts to delay and potentially kill the project.
The extraordinary promise from Canada’s Finance Minister, Bill Morneau, underlines the importance the project represents for the government, the economy and the country’s energy sector. The Trans Mountain expansion, with a price tag...