Alberta Government, TC Energy reach agreement to terminate Keystone XL Pipeline Project

Lawrence Kim
June 10, 2021

Albertans will owe about $1.3 billion for Keystone XL as the government and TC Energy confirmed Wednesday the pipeline project is officially dead.

The Albertan government reiterated Wednesday that the cost of backing the project is expected to be around $1.3 billion, in line with its estimate outlined in the most recent provincial budget.

But a fatal blow came in January, when President Biden revoked the pipeline's permit to cross the U.S.

The 1,200-mile line, created to carry crude from Canada's oil sands through Montana, South Dakota and southern Nebraska, has faced years of pointed opposition from environmental and community groups, as well as a number of legal battles that landed the project before the U.S. Supreme Court.

Previously, Alberta Premier Jason Kenney said the government would work with TC Energy to "to use all legal avenues available to protect its interest in the project". After Biden effectively cancelled the project, Kenney urged the federal government to press Washington to review the decision and to impose trade sanctions if that didn't happen.

"Through the process, we developed meaningful Indigenous equity opportunities and a first-of-its-kind, industry leading plan to operate the pipeline with net-zero emissions throughout its lifecycle", said TC Energy's President and Chief Executive Officer, François Poirier.

TC Energy says it will be working with regulators, stakeholders and Indigenous groups to ensure a safe termination, and exit, from the Project. "We will work with our USA partners to ensure that we are able to meet USA energy demands through the responsible development and transportation of our resources".

"We invested in Keystone XL because of the long-term economic benefits it would have provided Albertans and Canadians", said Energy Minister Sonya Savage in a news release.

The company said it would continue to look for opportunities in the energy transition and in powering existing USA assets with renewable energy.

Other reports by Click Lancashire

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