U.S. President Joe Biden killed the Keystone XL pipeline and Alberta is considering seeking compensation from the U.S. through an old free-trade rule that still exists. A North American Free Trade Agreement (NAFTA) provision allows compensation claims for lost investments.
Alberta spent C$1.5 billion towards construction of the project.
The United States-Mexico-Canada during the Trump administration replaced NAFTA but the old rule is in place during a phase-out period.
To “retroactively remove regulatory approval on the basis of which an investment was made is, in my view, a slam dunk case of a claim for damages through NAFTA under the investor protection provisions,” said Kenney on Tuesday. “We believe we have a very strong case for damages, and we’ll be continuing to work with TC Energy on that.”
TC Energy’s Keystone XL was to ship more than 800,000 barrels a day of crude from Alberta’s oil sands to U.S. refineries.
After Biden killed the project, TC Energy laid off about 1,000 employees in Canada and the U.S.
TC Energy sought $15 billion in compensation under NAFTA in 2016 after President Barack Obama rejected the project but the case was dropped after President Donald Trump approved the project.