The Trudeau government's decision to get into the pipeline business is fraught with financial risks, according to a new report.

The Cleveland-based Institute for Energy Economics and Financial Analysis has concluded that the planned purchase of Kinder Morgan's Canadian assets will boost the federal deficit by 36 percent.

That's based on an $11.6-billion estimate to complete the pipeline system.

Kinder Morgan earlier pegged the price at $7.4 billion to triple bitumen shipments to 890,000 barrels per day from Alberta to Burnaby, as well as construct associated infrastructure.

If the federal purchase is approved by the company's shareholders, it will also deliver a 637 percent gain to Kinder Morgan, according to the report. 

“Canada is weakening its finances by taking on unlimited costs to buy an unneeded pipeline with an uncertain future and giving an unusual profit to a U.S. company,” IEEFA director and former New York state first deputy comptroller Tom Sanzillo said in a news release.

He then added: “Even though the government plans to sell the pipeline, such a deal would likely come at a loss given the unusual guarantees promised future buyers, weak market conditions, and the likelihood that the Canadian government would be selling the project under distressed conditions.”

You can read the full report here.

“The findings of this report demonstrate that the Canadian federal government acted hastily and irresponsibly to buy this ill-fated pipeline," Stand.earth strategy director Karen Mahon said. "The purchase price was unjustifiably high and now the government will likely be pushed to sell at a significant loss—making this a terrible financial deal for Canadians."

The Institute for Energy Economics and Financial Analysis's stated mission "is to accelerate the transition to a diverse, sustainable and profitable energy economy".

Its funding sourcs include the Rockefeller Family Fund, Mertz-Gilmore Foundation, Energy Foundation, Moxie Foundation, Rockefeller Brothers Fund, and William and Flora Hewlett Foundation.