The Canadian government will buy the Kinder Morgan (NYSE: KMI) Canada Ltd’s Trans Mountain oil pipeline in a C$4.5 billion (US$3.5 billion) deal.

The country does not plan to be the long-term owner of the pipeline but will offer federal loan guarantees to ensure the construction throughout 2018.

Bill Morneau, the finance minister, said: “The federal government has reached an agreement with Kinder Morgan to purchase the existing Trans Mountain pipeline, and infrastructure related to the Trans Mountain expansion project.”

“So our message today is simple: 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,” he added.

The project has faced environmental opposition, with over 14,000 people signing the organisation’s pledge to halt the project due to the widespread concerns over environmental risks and the fight against climate change.

“Prime minister Trudeau has picked a fight with British Columbians by approving Kinder Morgan – and it starts now. The Kinder Morgan pipeline will not be built. Not on our watch,” said Caitlyn Vernon from the Sierra Club of British Columbia.

Justin Trudeau has defended the controversial project and said: “This is a decision based on rigorous debate, on science and evidence. We have not been and will not be swayed by political argument, be they local, or regional or national,” he said. “We have made this decision because we are convinced it is safe for BC, and it is the right one for Canada.”

The Canadian government has not made long-term plans clear but may sell the pipeline after completion, according to Canadian press.

Bloomberg has reported that the deal could be announced on Tuesday.