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Part of Development

Pipeline Project – Keystone XL

The project has been terminated and the Alberta government has ended its partnership with TC Energy.

Overview

On June 9, 2021, TC Energy Corporation announced it was terminating the Keystone XL project. The Government of Alberta and TC Energy Corporation agreed to an orderly exit from the KXL project and partnership. Final costs to the government are expected to be materially within $1.3 billion, in alignment with previously disclosed costs.

On February 9, 2022, the Government of Alberta, through the Alberta Petroleum Marketing Commission, filed the notice of intent to initiate a legacy North American Free Trade Agreement claim under the Canada–United States–Mexico Agreement over the cancellation of the presidential permit for the Keystone XL pipeline border crossing. The claim will seek to recover the government’s investment in the Keystone XL project.

The Keystone XL project was first proposed in 2008 as an extension of the existing Keystone Pipeline network. The Keystone XL pipeline would have offered a safe, reliable and environmentally responsible way to deliver crude oil from western Canada to refineries in the U.S. Gulf Coast.

In 2020, the Alberta government agreed to provide financial support to TC Energy to help advance pipeline construction. This investment included C$1.5 billion in equity investment in 2020 and a C$6 billion loan guarantee in 2021.

On January 20, 2021, the presidential permit for the Keystone XL border crossing was revoked by the U.S. administration. Construction activities were suspended following the revocation.

TC Energy is coordinating with regulators, stakeholders and Indigenous groups to ensure a safe and orderly exit from the project.

Project details

The Keystone XL pipeline would have covered 1,947 kilometres from Hardisty, Alberta, to Steele City, Nebraska. It would have had the capacity to carry 830,000 barrels per day of crude from western Canadian oil fields to Gulf Coast refineries in the U.S.

Construction activities on Keystone XL saw roughly 2,500 construction workers hired in Alberta and the U.S. in 2020, spurring thousands of additional jobs and increased economic activity in associated trades, retail, and hospitality services along the construction route.

If it had been completed, the project would have contributed approximately $2.4 billion to Canada’s GDP and an estimated $30 billion in tax and royalty revenues.

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