TC Energy says a federal judge’s decision to block a key permit for the Keystone XL crude oil pipeline last month could delay the project for as much as a year.
In February a federal Montana judge kept an injunction in place that blocks Alberta’s TC Energy from performing preliminary work on the Keystone XL oil pipeline. The judge ruled that the U.S. Army Corps of Engineers improperly approved a streamlined permit process.
Only weeks before the U.S. ruling, the pipeline project received a $5.3 billion aid package from the Alberta government.
But TC Energy believes it can overcome the issues presented by the ruling and has been working towards mitigating any potential delays by working on other portions of the project, said Bevin Wirzba, senior vice-president for liquids pipelines, on the company’s first-quarter earnings statement.
Keystone XL is expected to carry 830,000 barrels of crude a day along a 1,900-kilometer route. It would connect Alberta’s oil sands to U.S. Gulf Coast refineries. The project is expected to be up and running in 2023.
–Sarah Murphy/Alberta Press
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