CALGARY – Calgary energy company TC Energy is seeking more than US$15 billion from the U.S. for cancelling Keystone XL pipeline.
The company filed a Notice of Intent claim with the U.S. Department of State under the legacy rules in the old North American Free Trade Agreement (NAFTA). They say the U.S. government breached its trade obligations.
The Alberta government invested $1.3 billion into the Keystone XL project. The investment included $1.5 billion CDN in equity investment in 2020 followed and a $6 billion loan guarantee in 2021. The project was expected to be completed and in service in 2023.
The Alberta government estimated the project would put 12,000 Canadians to work and generate billions of dollars of employment income for Canadian and U.S. workers.
The pipeline would have carried at least 830,000 barrels per day of Alberta crude, significantly increasing the province’s takeaway capacity and helping to protect the value of its energy resources.
Alberta’s oil export capacity is limited by the lack of pipelines. Without the ability to export more oil, there is no incentive for producers to invest in more production in Alberta.
Without more pipelines, the future of Alberta’s oil and gas industry is capped.