Keystone XL is dead, Albertans are in trouble for $1.3B
As the provincial government and TC Energy announced the formal termination of the project on Wednesday, the Albertans’ final cost for the Keystone XL pipeline was approximately $1.3 billion.
Energy Secretary Sonia Savage said at a press conference: “We invested in Keystone XL because it can bring long-term economic benefits to Albertans and Canadians.”
The Alberta government last year agreed to invest approximately US$1.5 billion as equity in the project, plus billions of US dollars in loan guarantees to promote pipeline construction.
Therefore, the Canadian branch of the project has been under construction Months There are approximately 1,000 workers in southeastern Alberta.
If completed, the 1,897-kilometer-long pipeline, which was first announced in 2005, can transport 830,000 barrels of crude oil a day from Hardisti, Alta, to Nebraska. Then, it will be connected to the original Keystone that runs to the U.S. refinery on the Gulf Coast.
When the US Biden administration cancelled the project’s license on its first day in office, the investment evaporated.
TC Energy and the province stated that they would consider their options after the cancellation, but TC Energy stated that as of Wednesday, the pipeline extension has been officially terminated.
The company stated in a press release that it will continue to coordinate with regulatory agencies, stakeholders and indigenous groups to fulfill its environmental and regulatory commitments and to ensure the safe termination and exit of the project.
Previously, Alberta Governor Jason Kenny stated that the government will work with TC Energy to “use all available legal means to protect its interests in the project.”
On Wednesday, Kenny said that Alberta will continue to work with its US partners to ensure that the province has the capacity to meet US energy needs.
“We remain disappointed and frustrated with the status of the Keystone XL project, including the cancellation of the presidential permit for pipeline transit,” he said in a statement.
Richard Mason, an executive researcher at the School of Public Policy at the University of Calgary, said this pipeline is seen as an important link between supply and the market.
Watch | Masson discusses Keystone XL termination:
In an interview with CBC, Mason said: “We are now in a situation where those refineries are still seeking to obtain our oil, and we have fewer and fewer ways to obtain oil.” Power and politics.
“This could lead to lower oil prices in Canada, lower investment, fewer jobs, fewer taxes, and fewer royalties.”
In a press release, the opposition New Democratic Party of Alberta called on the prime minister to announce the full content of the pipeline transaction.
Calgary-Mountain View MLA and NDP energy critic Kathleen Ganley said: “Today’s loss is another example of how Jason Kenny has failed our energy department. From his embarrassing war room to his overdue budget. Investigation, he failed to create job opportunities.” released.
“Now, his mismanagement and total incompetence with this document have cost the people of northern Alberta US$1 billion.”
Environmentalists who have struggled with the project since it was first announced in 2008 described its cancellation as a “milestone moment” in efforts to curb the use of fossil fuels that cause climate change.
“Keystone XL is out of trouble,” said Jared Margolis of the Center for Biodiversity, one of many environmental groups that have sued to stop it.
Although some indigenous groups opposed the pipeline, some people participated in oil and gas development to solve the problem of reserve poverty.
Dale Swampy, President of the National League of Chiefs Complained in January Its abolition means less job opportunities for indigenous people in construction and supply of goods and services.