The leaders of the Trans Mountain pipeline and its financial overseer say there is a strong case for the federal government to maintain long-term ownership of the critical energy asset, potentially alongside Indigenous partners.

Speaking Monday at a Canadian Club Toronto luncheon, Trans Mountain Corp. President and CEO Mark Maki described the infrastructure as an "incredibly strategic asset" for the country.

"It is a sovereign pipeline," Maki said. "It starts in Canada. It really ends in Canada."

Elizabeth Wademan, head of the Canada Development Investment Corp. (CDEV), which manages the asset for the federal government, echoed his sentiments. 

She noted that recent global geopolitical turmoil has highlighted the pipeline’s importance.

"There's absolutely a case to be a long-term holder," Wademan said, adding she would like to see it remain owned by Canadians, though CDEV must keep all market options open.

The pipeline transports oilsands crude from Edmonton to a marine terminal near Vancouver, where cargoes are shipped to Asian markets. 

Originally built in the 1950s, the line underwent a massive expansion project (TMX) after Ottawa purchased it from Kinder Morgan for $4.5 billion in 2018 to ensure construction proceeded amid fierce opposition.

The expansion went into service in May 2024, but construction costs ballooned from an initial $7.4 billion estimate to more than $34 billion. 

Maki defended the escalation, citing an onerous regulatory environment, natural disasters, and the COVID-19 pandemic.

The federal government previously stated it does not intend to remain the permanent owner. While Wademan confirmed Indigenous participation is "absolutely still on the table," she noted negotiations are complex.

The pipeline currently carries 850,000 barrels of crude per day, nearing its maximum capacity of 890,000 barrels. 

Maki warned that this leaves little flexibility for Canadian producers and suggested the country needs a second West Coast pipeline. 

Trans Mountain is currently providing technical expertise to an Alberta-led initiative exploring potential new routes.