TC Energy Corporation has confirmed today that after a comprehensive review of its options, and in consultation with its partner, the Government of Alberta, it has terminated the Keystone XL Pipeline Project.
Keystone XL was planned to be a 1,947-kilometre pipeline capable of delivering 830,000 barrels per day of crude oil from Hardisty, Alberta, to Steele City, Nebraska, where it would connect with TC Energy’s existing facilities to reach U.S. Gulf Coast refiners to meet critical needs for transportation fuel and useful manufactured products.
TC Energy announced on 31 March 2020 that it would proceed with the construction of the pipeline, which was projected to support 13,200 jobs, and boost Canada’s and USA’s GDP by $2.4 billion and $3.4 billion during construction, respectively. However, construction activities were suspended following the revocation of the pipeline’s Presidential Permit on 20 January 2021 amid climate change concerns.
TC Energy maintained today that it will continue to coordinate with regulators, stakeholders and Indigenous groups to meet its environmental and regulatory commitments and ensure a safe termination of and exit from the project.
TC Energy’s President and Chief Executive Officer, François Poirier, said: “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 organisations that supported the project and would have shared in its benefits, including our partners, the Government of Alberta and Natural Law Energy, our customers, pipeline building trade unions, local communities, Indigenous groups, elected officials, landowners, the Government of Canada, contractors and suppliers, industry associations and our employees.”
“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,” Poirier said.
TC Energy will continue to progress $20 billion of secured growth projects, $7 billion of projects under development, and numerous additional initiatives.
“Looking forward, there is tremendous opportunity for TC Energy in the energy transition with its irreplaceable asset footprint, financial strength and organisational capabilities positioning it to capture further significant and compelling growth,” the company said.
“The company will continue to build on its 70-year history of success and leverage its diverse businesses in natural gas and liquids transportation along with storage and power generation to continue to meet the growing and evolving demand for energy across the continent.”