Canadian govt to brief media on oil pipeline aid, no decision yet

Canadian Finance Minister BillMorneau will brief reporters on Wednesday about talks withKinder Morgan Canada on possible aid for an oilpipeline project but will not be announcing a final decision, aspokesman said on Tuesday.

Ottawa says it is prepared to offer financial support toensure the company proceeds with a planned expansion of itsTrans Mountain line from oil sands projects in the province ofAlberta to British Columbia on the Pacific coast.

Kinder Morgan halted work last month, citing resistance fromthe British Columbia government, and said it would scrap theproject if it did not receive the certainty it needs by May 31.

Morneau is due to speak at 9 a.m. EDT (1300 GMT) onWednesday, the same day Kinder Morgan Canada holds its annualgeneral meeting in Calgary, Alberta.

"We are going to update on ongoing discussions. It's not thefinal deal, it's not anything like that," Morneau's spokesmanDan Lauzon said by phone, saying the discussions had beendifficult at some points.

Morneau, he added, would outline what solutions the federalgovernment could explore. Sources have previously said Ottawa isexamining options such as loan guarantees, a bailout, or takinga stake in the C$7.4 billion ($5.8 billion) project.

The development is supported by Canadian oil producers, whoreceive lower prices for their crude oil because of the lack oftransportation capacity to take it to end-users.

However, the pipeline is opposed by British Columbia as wellas some aboriginal groups and environmental activists, who citethe risk of spills.

(Reporting by David Ljunggren; Editing by ChristianSchmollinger)