(CNN) Canadian leader Justin Trudeau and his Cabinet have reapproved the Trans Mountain oil pipeline expansion project, with government profits from the tax revenues and other funds to be put toward clean energy ventures, the Prime Minister announced Tuesday.

The expansion project was first approved in 2016 but in August 2018, the Federal Court of Appeal stopped the approval and ordered a reconsideration of the project by the National Energy Board, CNN news partner CBC reported.

The expansion consists of creating a second pipeline alongside the existing 714-mile pipeline in Canada between Strathcona County in Alberta and Burnaby in British Columbia, which will increase the capacity of 300,000 barrels of oil per day to 890,000 barrels per day.

"We also believe that (the project) could solve the core of economic challenge we currently face, it's really simple. Right now, we basically have only one customer for our energy resources, the United States. As we've seen over the past few years, anything can happen with our neighbors to the south," Trudeau told reporters.

"Every business person knows that when you only have a single customer you're in a weaker position, you're vulnerable to that customer's desires, to changes in the market and policy orientation. We don't think that's an acceptable situation for Canada," he added.

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