Canadian Prime Minister Justin Trudeau will break off a foreign trip to hold an emergency meeting with the premiers of two provinces locked in a worsening dispute over an oil pipeline.
In 2016, the federal government approved plans by Kinder Morgan Canada to almost triple the capacity of its Trans Mountain pipeline from Alberta to the west coast.
But the British Columbia government argues they should make the final ruling because of the local risks of a spill.
Trudeau cut short his trip in order to invite Alberta Premier Rachel Notley – who backs the pipeline – and British Columbia Premier John Horgan to try and break the deadlock.
It is the first time in decades that different levels of government in Canada have argued so openly over resources.
“This likely is not going to be the end of the story. It’s the first step,” a senior government official told Reuters, saying Trudeau would outline the various financial, regulatory and legal options for handling the crisis.
“I think there’s a hope we break the deadlock and the prime minister can get beyond the political public posturing,” said the official, who was not authorized to speak to the media and requested anonymity. “This is impacting market confidence and investor confidence.”