TC Energy Corporation TRP — sponsor of the canceled Keystone XL pipeline — has sought a compensation of $15 billion under the North American Free Trade Agreement (NAFTA) provision from the United States for nixing a permit for the border-crossing oil conduit.
In January, in keeping with his campaign promise, President Joe Biden cancelled the contentious project that would have transported crude from the oil sands region of Canada to the American markets. Designed to carry 830,000 barrels of crude a day from Alberta’s oil sands to U.S. Gulf Coast refineries, the 1,947-kilometer pipeline was seen as a solution to the takeaway constraints in Canada.
The $8-billion development was TC Energy’s flagship project and its cancelation undoubtedly hurt the Calgary, Alberta-based midstream company’s long-term outlook. With the project’s construction already starting last year (after the Alberta government took an equity interest of $1.1 billion), the executive order meant that TRP had to let go in excess of 1,000 workers. In June, the company formally terminated the undertaking, following a comprehensive survey of its options in cooperation with the Alberta government and partners. ...
TC Energy believes that Biden’s move to rescind the Keystone XL permit even after the project was well underway for months on the U.S. as well as the Canada side was “unfair and inequitable.” The developer of the pipeline stressed that it had all the requisite permissions and pursued the project under three U.S. presidents for a very long period of time. The Biden administration’s decision to end the pipiline has also been blamed for causing mass layoffs of thousands of union workers, apart from putting an unfair loan burden of $1.3 billion on Alberta taxpayers and billions in debt guarantee. ...
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