OIL AND GAS: Developer cancels Keystone XL pipeline

  • OIL AND GAS: Developer cancels Keystone XL pipeline

OIL AND GAS: Developer cancels Keystone XL pipeline

"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.

TC Energy Corp announced they would cancel the Keystone XL pipeline Wednesday.

The decision to abandon the project was expected after President Joe Biden revoked the pipeline's permit to cross into the US's northern border in January.

The Alberta government agreed past year to invest about $1.5 billion as equity in the project, plus billions more in loan guarantees in order to get the pipeline moving.

"We remain undeterred in our commitment to stand up for Alberta's energy sector and the hard-working people it employs". She was not available for an interview Wednesday.

The 1,200-mile line was an effort to carry more Canadian crude through the USA, including Montana, South Dakota, to Steele City, Nebraska.

Alberta's investment in the Keystone pipeline included $1.5 billion in equity investment and a $6 billion loan guarantee in 2021. "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".

In a release Wednesday, Alberta Premier Jason Kenney said his government and TC will continue to explore avenues to recoup the province's investment in the project, and reiterated his opposition to the permit revocation.

Calgary-based TC Energy said it would work with government agencies "to ensure a safe termination of and exit from" the partially built line, which was to transport crude from the oil sand fields of western Canada to Steele City, Neb. "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 USA assets with renewable energy".

The project has been a point of contention among environmental activists and community groups for years.