Finance Minister Bill Morneau said purchasing the pipeline was the only way to ensure that a planned expansion could proceed. The pipeline, running from the oil sands of Alberta to a port in the Pacific province of British Columbia, would allow Canadian crude to gain greater access to foreign markets and higher prices.

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.

The company also faced opposition from environmentalists and aboriginal groups who worried about the pipeline spilling its tar-like heavy oil.

“When we are faced with an exceptional situation that puts jobs at risk, that puts our international reputation on the line, our government is prepared to take action,” Morneau told reporters.

He said the pipeline purchase provided the federal jurisdiction needed to overcome British Columbia’s opposition, but gave no details of how this would work.

The federal government can in theory step in and disallow any provincial laws that British Columbia might use to block the pipeline, but this provision in the Canadian constitution has not been used since the 1940s.

Ottawa could also deploy the police and troops to maintain a barrier between protesters and construction workers.

Although Ottawa has taken stakes in struggling energy projects, Tuesday’s announcement marked the first time Ottawa has bought an entire pipeline. It does not intend to own the project for long.

“There is a very strong business case for this pipeline,” Prime Minister Justin Trudeau told Bloomberg Television, saying the government takeover meant “a lot of the legal barriers and a lot of the challenge points actually disappear”.

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