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    Canada’s TC Energy confirms Keystone XL death

Summary

Alberta taxpayers on the hook for C$1.3bn

by: Dale Lunan

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Canada’s TC Energy confirms Keystone XL death

Canadian energy infrastructure giant TC Energy said June 9 it had officially terminated the controversial 1,897-km Keystone XL crude oil pipeline, following US president Joe Biden’s revocation of its presidential permit in January and a comprehensive review of its options.

At the same time, the government of Alberta said it and TC Energy had reached an agreement for the government’s “orderly exit” from the project partnership, but that both would continue to “explore all options to recoup the government’s investment in the project.”

Cost to Alberta, the government said, would be “materially within” C$1.3bn (US$1.08bn), in line with the most recently disclosed estimates.

“We remain disappointed and frustrated with the circumstances surrounding the Keystone XL project, including the cancellation of the presidential permit for the pipeline’s border crossing,” Alberta premier Jason Kenney said. “Having said this, Alberta will continue to play an important role in a reliable, affordable North American energy system.”

Sonya Savage, the province’s energy minister, said the government originally invested in Keystone XL because it aligned with Alberta’s long-term economic interests. Had the pipeline been completed, it would have generated an estimated C$30bn in increased royalties over the next 20 years.

“However, terminating our relationship with TC Energy’s project is in the best interest of Albertans under current conditions,” she said. “We remain undeterred in our commitment to stand up for Alberta’s energy sector and the hard-working people it employs.”

TC Energy said it will continue to coordinate with regulators, stakeholders and indigenous groups to meet its environmental and regulatory commitments and ensure a safe termination of and exit from the project. About 150 km pipe had already been installed in Alberta before work was suspended in January.