TC Energy cancels Keystone XL pipeline project

TC Energy Corp. on June 9 terminated the Keystone XL crude oil pipeline project.

President Biden revoked the project’s cross-border permit Jan. 20 and left the company with the option of another court fight or giving up. The company said its decision was reached in consultation with its partner, the government of Alberta.

“The company will continue to coordinate with regulators, stakeholders and indigenous groups to meet its environmental and regulatory commitments and ensure a safe termination of and exit from the project,” TC Energy said.

The possibility of convincing a court to overturn Biden’s decision had been pursued not by TC Energy but 21 states in a March lawsuit (OGJ Online, March 18, 2021).

TC Energy’s announcement triggered swift reactions focused on the long-running issues of jobs and environmental protection.

“President Biden killed the Keystone XL Pipeline and with it, thousands of good-paying American jobs,” said Sen. John Barrasso (R-Wyo.), a sharp critic of the current administration.

He was referring not only to 1,000 existing construction jobs but an estimated 10,000 more that needed to complete the project, not counting the operations and maintenance jobs that would have followed.

“The rushed approval of the Keystone Pipeline by the previous administration was a terrible idea,” said Rep. Raul Grijalva (D-Ariz.), chairman of the House Natural Resources Committee.

“Actions taken by the Biden-Harris administration to revoke the permit for Keystone XL and advance clean, renewable energy will help our country transition to a sustainable energy future and fight climate change at the same time,” Grijalva said.

The Keystone XL project would have involved 882 miles of pipeline to be built from the Canadian border to a connection in Steele City, Neb. From Steele City, an existing line would have taken the oil to the pipeline hub at Cushing, Okla.