Keystone XL pipeline project officially terminated

A section of pipe is placed in a trench near Oyen Alta. as part of the Keystone XL project in September 2020

The move comes months after President Joe Biden revoked a key permit for the pipeline.

TC Energy Corp. today canceled the Keystone XL pipeline, roughly 13 years after developers first proposed the project, which became a leading target for climate activists.

Final costs to the government "are expected to be materially within $1.3 billion", the province said.

TC Energy said the decision was made after a "comprehensive review of its options" and in consultation with the government of Alberta, which invested more than $1 billion in the project.

"We remain disappointed and frustrated with the circumstances surrounding the Keystone XL project, including the cancellation of the presidential permit for the pipeline's border crossing", Alberta premier Jason Kenney said in a release.

On Wednesday, he said the province will still work with US partners to play a role in meeting American energy demands.

The company said it would continue to look for opportunities in the energy transition and in powering existing USA assets with renewable energy.

According to projections from the Canadian Energy Regulator, the combination of the Trans Mountain Expansion Project, Enbridge Inc.'s Line 3 replacement and Keystone XL - along with existing pipeline capacity - would exceed total Canadian crude export demand through the 2050 forecast horizon. "At a time when Canadians are desperate to get back to work, the loss of this important project only makes this harder", said federal Conservative party leader Erin O'Toole.

Keystone XL would have increased Canadian export capacity by 830,000 barrels per day, running from Hardisty, Alta.to Steele City, Neb. "However, terminating our relationship with TC Energy's project is in the best interest of Albertans under current conditions".

Energy Minister Sonya Savage said the provincial government remains "undeterred" in its commitment to stand up for its energy sector.

To date, around 150km of pipeline has been installed in Alberta - while employing more than 1,600 workers during peak construction periods.

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