The Keystone XL pipeline, which has garnered a lot of controversy over the past several years, has officially been cancelled for good.
On Wednesday, TC Energy confirmed it had terminated the entire pipeline project, which was expected to transport crude from Canada’s oilsands to refineries in the US. Following Joe Biden’s inauguration in January, the new Biden administration decided to revoke the Presidential Permit, citing environmental concerns. In response, the Canadian government cautioned against the move, suggesting it would weaken relations between the two neighbouring countries.
Advocates in favour of the pipeline have argued the terminating the Keystone XL will not curtail the demand for crude oil, but rather boost America’s dependence on imports from OPEC economies. In addition, the pipeline’s termination will also kill thousands of jobs in both Canada and the US.
Going forward, TC Energy said its next step is to determine how to wind down all Keystone XL-related work, while also meeting its regulatory and environmental obligations. Back in January, it was proposed that in the event TC Energy did not challenge the permit termination via NAFTA or in court, the company could sell some of the project’s supplies to help offset the costs associated with the pipeline, of which the Alberta government has sunk $1.2 billion thus far.
Information for this briefing was found via TC Energy. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.