In this Dec. 18, 2020 photo, pipes to be used for the Keystone XL pipeline are stored in a field near Dorchester, Neb. THE CANADIAN PRESS/AP-Chris Machian /Omaha World-Herald via AP

In this Dec. 18, 2020 photo, pipes to be used for the Keystone XL pipeline are stored in a field near Dorchester, Neb. THE CANADIAN PRESS/AP-Chris Machian /Omaha World-Herald via AP

TC Energy halts spending on Keystone XL, says it’s ‘disappointed’ with Biden move

TC Energy said it will stop capitalizing costs, including interest during construction,

Work on the Keystone XL project is being suspended in anticipation of U.S. president-elect Joe Biden revoking its vital presidential permit once he is sworn in, Calgary-based TC Energy Corp. said Wednesday.

The company said it is “disappointed” with Biden’s action expected later today, adding it will overturn extensive regulatory reviews that found the pipeline would transport needed energy in an environmentally responsible way and bolster North American energy security.

It warned the move will lead to the layoffs of thousands of union workers and comes despite its commitments to use renewable energy to power the pipeline and forge equity partnerships with Indigenous communities.

Francois Poirier, who took over as TC Energy CEO at the beginning of the year, said in a statement the company remains committed to growing earnings and dividends through its investments in critical energy infrastructure even if Keystone XL doesn’t go ahead.

“Our base business continues to perform very well and, aside from Keystone XL, we are advancing $25 billion of secured capital projects along with a robust portfolio of other similarly high-quality opportunities under development,” he said.

TC Energy said it will stop capitalizing costs, including interest during construction, effective Wednesday, and will evaluate the carrying value of its investment in the pipeline, net of project recoveries.

It says this will likely result in “substantive” mostly non-cash writedowns in its first-quarter financial results.

Meanwhile, environmental groups applauded Biden’s expected move.

“Killing the Keystone XL pipeline once and for all is a clear indication that climate action is a priority for the White House. This should not come as a surprise to anyone,” said Dale Marshall, national climate program manager for Canada’s Environmental Defence.

“We should take heed when the biggest customer for Canada’s oil kills a pipeline that is already under construction. The Keystone XL pipeline never made sense for either the U.S. or Canada.”

In contrast, Saskatchewan Premier Scott Moe said it’s “incredibly troubling” that TC Energy has suspended work on Keystone XL.

“Now is the time for our nations to strengthen our trading relationship, not erect further barriers to collaborative and sustainable development,” he said in a statement.

The Progressive Contractors Association of Canada said in a news release it is disappointed that Biden is “putting politics before reason” in his anticipated decision to rescind the pipeline permit.

“Pulling the plug on a major project, hours after taking office, is a rocky starting point for re-setting Canada/U.S. relations,” said PCAC president Paul de Jong.

The association, whose member companies employ thousands of Alberta and B.C. construction workers, said the pipeline would have generated as many as 60,000 direct and indirect jobs in Canada and the United States.

On Tuesday, Alberta Premier Jason Kenney urged Prime Minister Justin Trudeau in a phone conversation to continue his efforts to press Biden to allow Keystone XL to proceed.

Kenney’s government has invested $1.5 billion directly in the project, along with loan guarantees, and he has said about $1 billion is at risk if the project is killed.

The 1,947-kilometre pipeline is designed to carry 830,000 barrels a day of crude oil from Hardisty, Alta., to Steele City, Neb. From there it would connect with the company’s existing facilities to reach the U.S. Gulf Coast — one of the world’s biggest oil refining hubs.

TC Energy announced a plan Sunday for the Keystone XL project to achieve net zero emissions by spurring an investment of over US$1.7 billion in communities along the Keystone XL footprint to create about 1.6 gigawatts of renewable electric capacity.

READ MORE: Documents show Biden plans to issue order to cancel Keystone XL on first day in office

The Calgary-based company has also struck a deal with four labour unions to build the pipeline and has an agreement in place with five Indigenous tribes to take a roughly $785 million ownership stake.

Some 200 kilometres of pipe have already been installed for the expansion, including across the Canada-U.S. border, and construction has begun on pump stations in Alberta and several U.S. states.

Biden was vice-president in 2015 when Barack Obama rejected Keystone XL for fear it would worsen climate change.

Trump approved it again in March 2019.

Dan Healing, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Joe BidenKeystone XL

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Members of the Abbotsford Community Action Team include (from left) Bev Olfert, Rebecca Tice, Tally Clement, Const. Mary Boonstra, Mandy Aujla, Wanda Phillips and Devinder Dherari-Sidhu. (Submitted photo)
Abbotsford group raises awareness about sexual exploitation of youth

Community Action Team uses posters, stickers and online information

The driver of a pickup truck failed to stop after knocking down a wooden fence on March 3, 2021. (screen grab)
VIDEO: Footage catches pick-up driver smashing fence on Abbotsford/Langley border

Driver came forward after video circulated on social media

Free Reformed Church is seen as people attend service, in Chilliwack, B.C., on Sunday, Feb. 21, 2021. Lawyers for the British Columbia government and the Justice Centre for Constitutional Freedoms are back in B.C. Supreme Court today, squaring off over the legality of COVID-19 rules that prohibit in-person religious services. THE CANADIAN PRESS/Darryl Dyck
B.C. top doctor has power to restrict access to a place during health hazard: lawyer

Under B.C.’s Public Health Act, Jacqueline Hughes says, Henry can restrict or prevent entry to a place

Photo by Dale Klippenstein
Two men taken to hospital after fight on Keeping Road in Abbotsford

One of the men suffers serious injuries in incident on Thursday night

Stattonrock Design + Build in Abbotsford won four awards at the recent Fraser Valley Housing Awards of Excellence, including for Best Renovation – Whole House and Best Kitchen Renovation over $50,000 for this house.
Abbotsford company wins four housing excellence awards

Stattonrock Design + Build’s honours include Residential Renovator of the Year

The James C Richardson Pipe Band marches in a Remembrance Day parade on Nov. 11, 2019 in Chilliwack. Wednesday, March 10 is International Bagpipe Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of March 7 to 13

International Bagpipe Day, Wash Your Nose Day and Kidney Day are all coming up this week

More than ever before, as pandemic conditions persist, the threat of data breaches and cyberattacks continues to grow, according to SFU professor Michael Parent. (Pixabay photo)
SFU expert unveils 5 ways the COVID-19 pandemic has forever changed cybersecurity

Recognizing these changes is the first in a series of steps to mitigate them once the pandemic ends, and before the next: Michael Parent

Lower Mainland teens with Ocean Wise’s YouthToSea program have launched an initiative called Clean Coastal, Eat Local, through which they’re offering restaurant gift cards to individuals or households that organize a coastal cleanup in the month of March. (Photo supplied by Ocean Wise)
Teens challenge Lower Mainlanders to clean up their act

YouthToSea offers restaurant gift cards in exchange for a cleaner coastline

Kevin Haughton is the founder/technologist of Courtenay-based Clearflo Solutions. Scott Stanfield photo
Islander aims Clearflo clean drinking water system at Canada’s remote communities

Entrepreneur $300,000 mobile system can produce 50,000 litres of water in a day, via solar energy

Malawian police guard AstraZeneca COVID-19 vaccines after the shipment arrived in Lilongwe, Malawi, Friday March 5, 2021. Canada is expecting its first shipments of AstraZeneca vaccine next week. (Associated Press/Thoko Chikondi)
B.C.’s daily COVID-19 cases climb to 634 Friday, four more deaths

Currently 255 people in hospital, 66 in intensive care

A crashed helicopter is seen near Mt. Gardner on Bowen Island on Friday March 5, 2021. Two people were taken to hospital in serious but stable condition after the crash. (Irene Paulus/contributed)
2 people in serious condition after helicopter goes down on Bowen Island

Unclear how many passengers aboard and unclear where the helicopter was going

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Surrey Pretrial in Newton. (Photo: Tom Zytaruk)
B.C. transgender inmate to get human rights hearing after being held in mostly male jail

B.C. Human Rights Tribunal member Amber Prince on March 3 dismissed the pretrial’s application to have Makayla Sandve’s complaint dismissed

Supporters rally outside court as Pastor James Coates of GraceLife Church is in court to appeal bail conditions, after he was arrested for holding day services in violation of COVID-19 rules, in Edmonton, Alta., on Thursday March 4, 2021. THE CANADIAN PRESS/Jason Franson
‘Law remains valid:’ Pastor accused of violating health orders to remain in jail

The Justice Centre for Constitutional Freedoms is representing the pastor

Most Read