Joe Biden on his first day in office will revoke the presidential permit needed to build the remaining tracks of the Keystone XL project led by TC Energy; a midstream project between Canada and the U.S. that has been delayed almost for 12 years.
The revocation of the project will happen as Biden will sign 15 executive orders on his first day in office, to address the crises of the pandemic, climate change, racial inequity among others. As we reported previously, sources near to Biden’s transition team have already confirmed Biden’s intentions to revoke the project.
TC Energy, owner and developer of the project said it was highly disappointed with Biden’s decision, as it will lay off thousands of union jobs; hit the north American energy security, and “overturn an unprecedented, comprehensive regulatory process that lasted more than a decade.”
“TC Energy will review the decision, assess its implications, and consider its options. However, as a result of the expected revocation of the Presidential Permit, advancement of the project will be suspended. The company will cease capitalizing costs, including interest during construction, effective January 20, 2021, being the date of the decision, and will evaluate the carrying value of its investment in the pipeline, net of project recoveries,” the company said in a statement.
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Keystone XL has had a long history of controversy and rocky path on its way to construction. It would have carried 830,000 barrels per day of oil from Alberta to Nebraska. Environmental groups and other opposing organizations have delayed the project for almost 12 years. Nevertheless, the outgoing president Donald Trump promised to revive the project.
“Our base business continues to perform very well and, aside from Keystone XL, we are advancing $25 billions of secured capital projects along with a robust portfolio of other similarly high-quality opportunities under development,” said François Poirier, TC Energy’s President and CEO.
The Biden administration will now face its first bump with Canada, one of U.S.’s key energy partners. Justin Trudeau said on Tuesday that Canada was pressing people near to Biden for him to reconsider his actions upon KXL.
Alberta premier, Jason Kenney has threatened to start legal action if Biden revokes the $8 billion project.