Keystone XL project officially dead – Alberta taxpayers out $1.3 billion

June 10, 2021 user

TC Energy announced Wednesday it was shutting the project and Alberta Premier Jason Kenney said his government has reached an exit agreement with the company, leaving taxpayers on the hook for $1.3 billion.

Alberta taxpayers are out $1.3 billion after plans for the Keystone XL pipeline project were officially shelved.

TC Energy announced Wednesday it was shutting the project and Alberta Premier Jason Kenney said his government has reached an exit agreement with the company, leaving taxpayers on the hook for $1.3 billion.

Kenney gave the company a $1.5 billion cash investment and another $6 billion in loan guarantees in the hopes the project would move forward with the expansion of the project through the US.

The taxpayer’s cash was thrown in despite the fact Democratic candidate Joe Biden said he would revoke the pipeline’s permit on his first day in office, if elected.

Well, he was, and he did.

“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,” said Kenney in a Wednesday statement.

“Having said this, Alberta will continue to play an important role in a reliable, affordable North American energy system. We will work with our U.S. partners to ensure we are able to meet U.S. energy demands through the responsible development and transportation of our resources.”

As to why they invested in the first place, the province said: “Alberta’s government invested in Keystone XL because the project aligned with the province’s long-term economic interests. The pipeline’s completion would have led to higher prices as well as increased volumes of oil sands crude production, generating at least $30 billion in increased royalties over 20 years for Alberta taxpayers.”

To date, roughly 150 kilometres of pipeline has been installed in Alberta, employing more than 1,600 people during peak construction.

“We invested in Keystone XL because of the long-term economic benefits it would have provided Albertans and Canadians. However, terminating our relationship with TC Energy’s project is in the best interest of Albertans under current conditions. We remain undeterred in our commitment to stand up for Alberta’s energy sector and the hard-working people it employs,” said Energy Minister Sonya Savage.

TC Energy swung to a loss in the first quarter, hit by $2.2 billion (US$1.81 billion) impairment charges related to the suspension of the Keystone XL project.

“We value the strong relationships we’ve built through the development of this project and the experience we’ve gained. We remain grateful to the many organizations that supported the project and would have shared in its benefits,” said TC Energy’s president and CEO, François Poirier.

“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. We will continue to identify opportunities to apply this level of ingenuity across our business going forward, including our current evaluation of the potential to power existing U.S. assets with renewable energy.”

Attorneys for 21 states have lined up and are suing Biden over his cancellation of the Keystone XL pipeline.

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