Keystone XL project officially terminated, Alberta ends partnership with TC Energy

Keystone XL project officially terminated, Alberta ends partnership with TC Energy

The sponsor of the Keystone XL crude oil pipeline said Wednesday it is pulling the plug on the contentious project after Canadian officials failed to persuade President Biden to reverse his cancellation of its permit on the day he took office.

The announcements come after US president Joe Biden signed an executive order to revoke the pipeline's permit on his first day in office in January - a move he had promised during his election campaign.

"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.

The Alberta government agreed previous 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.

TC Energy said the decision was made after a "comprehensive review of its options" and in consultation with the government of Alberta, which invested more than $1 billion in the project.

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.

On Wednesday, he said the province will still work with USA partners to play a role in meeting American energy demands.

Construction on the project was suspended after Biden revoked its permit on January 20. "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 cancellation of the Keystone XL pipeline extension is devastating".

Keystone XL would have increased Canadian export capacity by 830,000 barrels per day, running from Hardisty, Alta.to Steele City, Neb.

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