TC Energy looking $15B in damages from U.S. after KXL

TC Energy trust notes

TC Energy, the Canadian based company, said this Friday it is seeking payments of around $15 billion from the United States government, after the Biden-Harris administration axed the project on its first day in office.

Firstly, the company officially canceled the project valued at $9 billion earlier this month. This, after Joe Biden revoked a key permit needed to build the pipeline. He did so on his very first day in office, as we reported previously.  

Secondly, the project had been delayed for almost a decade, as it faced severe opposition from environmental groups and indigenous groups, claiming that Keystone XL would have damaged their lands.

Thirdly, the project intended to carry 830,000 barrels of heavy crude per day across the border from Alberta in Canada to Nebraska.

Moreover, according to Reuters, the company will now look to file a notice of intent, to begin a legacy North American Free Trade Agreement (NAFTA) claim; under the United States-Mexico-Canada agreement.

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TC Energy to apply KXL level of ingenuity to further projects

In addition, this claim under the legacy rules of the agreement would grant the company with the right for compensations; or the $15 billion in damages that the company claims; under the company’s view, the U.S. government breached its free trade obligations.

Furthermore, the Alberta government invested in the project and was left on the hook for $1.3 billion when it was cancelled. In fact, earlier this month, the Alberta Premier Jason Kenney said in a statement. “We remain disappointed and frustrated with the circumstances surrounding the Keystone XL project.”

On the other hand, Federal Conservative leader Erin O’Toole said the pipeline’s termination was “devastating.” He also remarked. “At a time when Canadians are desperate to get back to work, the loss of this important project only makes this harder.”

The Canadian government said the pipeline’s completion would have led to higher prices; and also increased volumes of crude production; it remarked that it would have generated at least $30 billion in increased royalties over 20 years.

Finally, TC Energy president and chief executive officer François Poirier, said. “Through the process, we developed meaningful Indigenous equity opportunities; and also a first-of-its-kind, industry-leading plan to operate the pipeline with net-zero emissions throughout its lifecycle. We will continue to identify opportunities to apply this level of ingenuity across our business going forward; including our current evaluation of the potential to power existing U.S. assets with renewable energy.”

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