Midstream

TC Energy grants six contracts for Keystone XL $1.6 Bn worth

TC Energy Keystone XL awards six new contracts

The company in charge of the Keystone XL project, TC Energy, has awarded more than $1.6 billion worth of contracts to six major American union contractors.

TC wants to ensure the construction of the project in 2021.

The contractors will be responsible for hiring up to 7000 union workers in 2021; when these new contracts combine with the existent ones, the total number of American union workers hired by the Keystone XL project will be around 8000.

The estimated gross wage is up to $900 million, and, in total, the monstrous pipeline would create in 2021 more than $1.6 billion in gross wages, with 11,000 Americans working on it.

By far is one of the nation’s biggest midstream projects, although it has hurdled some difficulties.

The $8 billion worth project is intended to move around 830,000 barrels a day of Canadian crude to the U.S. and finally to Texas through the entire Keystone system.

President Trump brought back the project during his administration. Now, amid the November third election, it’s facing uncertainty, as Joe Biden has promised to kill the already decade-long project.

Nevertheless, the contract awards seek momentum in this crucial time for the energy sector and American politics.

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“The 8000 American union jobs that come with 2021 construction is welcome news and irreplaceable as the U.S. continues our economic recovery.”, said James T. Callahan, General President of the International Union of Operating Engineers.

According to the Keystone XL report, the companies awarded contracts are Barnard Pipeline, Associated Pipeline, Michels, Precision Pipeline, Price Gregory International, and U.S. Pipeline.

Earlier this year, TC Energy announced that the project had secured $1.1 billion in taxpayer support from the Alberta government. Also other $4.2 billion in potential government loans.

In fact, the construction on Canada’s side of the border is already complete. “With construction activities well underway in the U.S., Keystone XL is already playing a critical role in contributing to North America’s economic recovery,” said Richard Prior, President, Keystone XL Pipeline.

“The selection of our U.S. construction contractors for 2021 is an important next step in employing thousands of more American union workers and delivering tangible benefits to local communities and businesses.”, he concluded.

With this announcement, the Keystone XL project meets a critical point in addressing environmental, security, and financial needs in the U.S. With the election around the corner, its further development will be crucial for the next years in the midstream business.

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