In this Dec. 18, 2020 photo, pipes to be used for the Keystone XL pipeline are stored in a field near Dorchester, Neb. THE CANADIAN PRESS/AP-Chris Machian /Omaha World-Herald via AP

In this Dec. 18, 2020 photo, pipes to be used for the Keystone XL pipeline are stored in a field near Dorchester, Neb. THE CANADIAN PRESS/AP-Chris Machian /Omaha World-Herald via AP

TC Energy halts spending on Keystone XL, says it’s ‘disappointed’ with Biden move

TC Energy said it will stop capitalizing costs, including interest during construction,

Work on the Keystone XL project is being suspended in anticipation of U.S. president-elect Joe Biden revoking its vital presidential permit once he is sworn in, Calgary-based TC Energy Corp. said Wednesday.

The company said it is “disappointed” with Biden’s action expected later today, adding it will overturn extensive regulatory reviews that found the pipeline would transport needed energy in an environmentally responsible way and bolster North American energy security.

It warned the move will lead to the layoffs of thousands of union workers and comes despite its commitments to use renewable energy to power the pipeline and forge equity partnerships with Indigenous communities.

Francois Poirier, who took over as TC Energy CEO at the beginning of the year, said in a statement the company remains committed to growing earnings and dividends through its investments in critical energy infrastructure even if Keystone XL doesn’t go ahead.

“Our base business continues to perform very well and, aside from Keystone XL, we are advancing $25 billion of secured capital projects along with a robust portfolio of other similarly high-quality opportunities under development,” he said.

TC Energy said it will stop capitalizing costs, including interest during construction, effective Wednesday, and will evaluate the carrying value of its investment in the pipeline, net of project recoveries.

It says this will likely result in “substantive” mostly non-cash writedowns in its first-quarter financial results.

Meanwhile, environmental groups applauded Biden’s expected move.

“Killing the Keystone XL pipeline once and for all is a clear indication that climate action is a priority for the White House. This should not come as a surprise to anyone,” said Dale Marshall, national climate program manager for Canada’s Environmental Defence.

“We should take heed when the biggest customer for Canada’s oil kills a pipeline that is already under construction. The Keystone XL pipeline never made sense for either the U.S. or Canada.”

In contrast, Saskatchewan Premier Scott Moe said it’s “incredibly troubling” that TC Energy has suspended work on Keystone XL.

“Now is the time for our nations to strengthen our trading relationship, not erect further barriers to collaborative and sustainable development,” he said in a statement.

The Progressive Contractors Association of Canada said in a news release it is disappointed that Biden is “putting politics before reason” in his anticipated decision to rescind the pipeline permit.

“Pulling the plug on a major project, hours after taking office, is a rocky starting point for re-setting Canada/U.S. relations,” said PCAC president Paul de Jong.

The association, whose member companies employ thousands of Alberta and B.C. construction workers, said the pipeline would have generated as many as 60,000 direct and indirect jobs in Canada and the United States.

On Tuesday, Alberta Premier Jason Kenney urged Prime Minister Justin Trudeau in a phone conversation to continue his efforts to press Biden to allow Keystone XL to proceed.

Kenney’s government has invested $1.5 billion directly in the project, along with loan guarantees, and he has said about $1 billion is at risk if the project is killed.

The 1,947-kilometre pipeline is designed to carry 830,000 barrels a day of crude oil from Hardisty, Alta., to Steele City, Neb. From there it would connect with the company’s existing facilities to reach the U.S. Gulf Coast — one of the world’s biggest oil refining hubs.

TC Energy announced a plan Sunday for the Keystone XL project to achieve net zero emissions by spurring an investment of over US$1.7 billion in communities along the Keystone XL footprint to create about 1.6 gigawatts of renewable electric capacity.

READ MORE: Documents show Biden plans to issue order to cancel Keystone XL on first day in office

The Calgary-based company has also struck a deal with four labour unions to build the pipeline and has an agreement in place with five Indigenous tribes to take a roughly $785 million ownership stake.

Some 200 kilometres of pipe have already been installed for the expansion, including across the Canada-U.S. border, and construction has begun on pump stations in Alberta and several U.S. states.

Biden was vice-president in 2015 when Barack Obama rejected Keystone XL for fear it would worsen climate change.

Trump approved it again in March 2019.

Dan Healing, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Joe BidenKeystone XL

Just Posted

Patrons rip around a corner on the go-kart course at Lakeshore Go-Karts and Mini-Golf. (Photo by Megan Roth/Sylvan Lake News)
Sylvan Lake go-kart and mini golf course reopens after fire

Last August the outdoor facility was shut down after a fire burned through much of the business

(File photo from The Canadian Press)
Red Deer down to 66 active COVID-19 cases

Red Deer has lowest number of active cases since last November

A small selection of shoes line a step at the Municipal Government Building in Sylvan Lake, with each pair representing a vicitm of residential schools in Canada. Tracey Greinke placed the first pair of shoes on the steps, hoping more would follow. (Photo by Megan Roth/Sylvan Lake News)
Sylvan Lake woman sets up small memorial for residential school victims

Tracey Grienke placed a pair of moccasins on the steps of town hall, and a few more followed

FILE – Perry Bellegarde, National Chief of the Assembly of First Nations, takes part in an event on Parliament Hill in Ottawa on Tuesday, July 7, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Indigenous Peoples Day must be a ‘call to action’, says Assembly of First Nations chief

Discovery of children at Kamloops residential school site must lead to change, Perry Bellegarde says

Left handed pitcher Evan Wilde started the game for Sylvan Lake and allowed four runs in the 12-10 extra-innings loss against the Edmonton Prospects on Sunday in Western Canadian Baseball League play. (Photos by Byron Hacket/Blakc Press News Media)
Historic opening weekend for Sylvan Lake Gulls

The Gulls finished the opening weekend with one win and two losses

The border crossing into the United States is seen during the COVID-19 pandemic in Lacolle, Que. on February 12, 2021. THE CANADIAN PRESS/Paul Chiasson
VIDEO: Border quarantine to soon lift for fully vaccinated Canadians

Eligible travellers must still take multiple COVID-19 tests

Fans watch the warm-up before Game 6 between the Toronto Maple Leafs and the Montreal Canadiens in NHL playoff hockey action Saturday, May 29, 2021 in Montreal. Quebec’s easing of COVID-19 restrictions will allow 2,500 fans to attend the game for the first time in fourteen months. THE CANADIAN PRESS/Ryan Remiorz
Two-thirds of Canadians say governments shouldn’t lift all COVID-19 restrictions

Poll reports Canadians who gained pandemic weight say they have gained 16 pounds on average

Paul Bernardo is shown in this courtroom sketch during Ontario court proceedings via video link in Napanee, Ont., on October 5, 2018. Teen killer and serial rapist Paul Bernardo is set for a parole hearing today. The designated dangerous offender, has been eligible for full parole for more than three years. Bernardo’s horrific crimes in the 1980s and early 1990s include for kidnapping, torturing and killing Kristen French and Leslie Mahaffy near St. Catharines, Ont. THE CANADIAN PRESS/Greg Banning
Killer rapist Paul Bernardo faces parole hearing today; victim families opposed

Designated dangerous offender has been eligible for full parole for more than three years.

People look over the damage after a tornado touched down in Mascouche, Que., north of Montreal, Monday, June 21, 2021. Dozens of homes were damaged and one death has been confirmed. THE CANADIAN PRESS/Ryan Remiorz
One dead and extensive damage as tornado hits Mascouche, Que., north of Montreal

Damage reported in several parts of the city, and emergency teams dispatched to sectors hardest hit

FILE - In this Nov. 29, 2020, file photo, Las Vegas Raiders defensive end Carl Nassib leaves the field after an NFL football game against the Atlanta Falcons in Atlanta. Nassib on Monday, June 21, 2021, became the first active NFL player to come out as gay. Nassib announced the news on Instagram, saying he was not doing it for the attention but because “I just think that representation and visibility are so important.” (AP Photo/John Bazemore, File)
Nassib becomes first active NFL player to come out as gay

More than a dozen NFL players have come out as gay after their careers were over

A pair of Alberta residents were arrested after police responded to a report of a woman who had allegedly been assaulted and confined against her will on June 20, 2021. (File photo)
Salmon Arm RCMP arrest 2 Albertans suspected in alleged assault, unlawful confinement

Firearms, stolen items seized including NHL hockey cards believed to be worth thousands

A man makes his way past signage to a mass COVID-19 vaccination centre at the University of Toronto’s Mississauga campus during the COVID-19 pandemic in Mississauga, Ont., on Monday, May 17, 2021. THE CANADIAN PRESS/Nathan Denette
Canadians encouraged to see mRNA shots as interchangeable as more 2nd doses open up

Doctors urge people not to hesitate if offered Moderna after getting Pfizer for their first shot

Chief of Defence Staff Jonathan Vance sits in the front row during a news conference in Ottawa on June 26, 2020. THE CANADIAN PRESS/Adrian Wyld
Defence committee rises without report on Vance allegations

Committee had been investigating the government’s handling of complaints against former defence chief

Tl’etinqox-lead ceremony at the site of the former St. Joseph’s Mission in Williams Lake, B.C., June 18, 2021. (Angie Mindus photo - Williams Lake Tribune)
‘We are all one people’: Honouring residential school victims and survivors

Love, support and curiousity: Canadians urged to learn about residential schools and their impact

Most Read