TC Energy Suspends Work on Keystone XL Amid Biden’s Plan to Revoke Permit

TC Energy Corp (TSX: TRP) announced earlier this week that it will freeze spending on the Keystone XL pipeline, which was done in anticipatiom that President-elect Joe Biden will revoke the project’s permit once he was sworn in later in the week.

According to a news release, TC Energy said it is ‘disappointed’ with Biden’s stance on the pipeline, and as a result it will freeze additional spending on the project as of Wednesday. The company announced that it will put a stop on the capitalization of costs, including interest during construction, while it evaluates the carrying value of its investment into the project. TC Energy noted that the spending freeze will result in substantial non-cash writedowns in the first quarter 2021.

In addition, TC Energy also warned that the scrapping of the Keystone XL will lead to thousands of layoffs of union workers, despite the company’s commitment to cooperate with Indigenous communities and utilize more renewable energy.

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.