Thursday, March 30, 2023

Canada plans to scrap Keystone XL if Biden kills the project | Business and economic news

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The Canadian province that invested in the crude pipeline is looking to sell it to recover some of its $ 1.1 billion.

The Canadian province that invested $ 1.1 billion of taxpayer dollars in the controversial Keystone XL project is now considering the sale of pipes and materials in an attempt to recover funds.

“If the project ends, there would be assets that could be sold, such as huge amounts of pipe,” Alberta Premier Jason Kenney said at a press conference Monday. “It would offset the construction costs.”

With Joe Biden ready to be sworn in this week, the election promise of the President-elect of the United States to cancel the crude oil pipeline permit haunts Canada’s oil sands industry. The move could come from a management decision on the first day of her tenure, CBC News reported on Sunday, citing people she did not identify.

Meanwhile, Justin Trudeau’s government has pledged to defend the project.

Alberta, home to the third largest crude reserves in the world, has struggled with a lack of pipeline capacity to ship its crude oil to the US Gulf Coast and other markets for years. Keystone XL from TC Energy Corp. was one of the possible pipelines the industry relied on to solve this problem.

Canceling Keystone XL would cost Alberta taxpayers just over C $ 1 billion ($ 785 million), Kenney said.

In March, the Kenney government agreed to fund the first year of construction with an investment of $ 1.1 billion and to guarantee $ 4.2 billion in loans to get construction going again.

The province and TC Energy have a “strong legal basis” to recover damages in court, Kenney also said.


Canadian Energy Minister Seamus O’Regan said the federal government continues to support Keystone XL and will promote the project to the Biden administration.

“Canadian oil is produced under strong environmental and climate policy frameworks, and this project will not only strengthen the vital energy relationship between Canada and the United States, but create thousands of good jobs for workers on both sides of the world.” the border, ”O’Regan said in an email.

Kenney noted that the federal government has declared the pipeline to be the “top priority” in Canada’s relations with the United States.

“Sit down and review the many facts that have changed since KXL was proposed ten years ago,” Kenney said, citing the reduction in tar sands carbon emissions, labor agreements and Indigenous participation. in the pipeline.

More than ten years old, the Keystone XL project was initially rejected by former President Barack Obama over concerns about climate change, but his successor Donald Trump issued a new permit when he took office .

The Canadian Association of Petroleum Producers said canceling the project would kill thousands of jobs and offered to work with stakeholders to find a solution to complete the pipeline.


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