Wednesday , March 3 2021

Canada plans to sell Keystone XL for scrap if Biden kills the Business and Economy News project

The Canadian province that invested in the crude pipeline is looking to sell it to recoup some of its $ 1.1 billion.

The Canadian province that invested $ 1.1 billion in taxpayer money in the controversial Keystone XL project is now considering selling pipes and materials to try to recoup some funds.

“If the project ends, there would be assets that could be sold, such as huge amounts of pipes,” Alberta Minister Jason Kenney said at a news conference Monday. “That would offset construction costs.”

With Joe Biden expected to swear this week, the promise of the U.S. president-elect’s campaign to cancel the pipeline license haunts the Canadian oil sands industry. The decision may come through executive action on the first day in office, CBC News reported Sunday, citing people it did not identify.

Meanwhile, Justin Trudeau’s government promised to defend the project.

Alberta, home to the world’s third-largest crude oil reserve, has struggled for years with a lack of pipeline capacity to send crude to the U.S. Gulf Coast and other markets. Keystone XL from TC Energy Corp was one of the possible pipelines the industry had to fix it.

The cancellation of Keystone XL would cost Alberta taxpayers just over $ 1 billion ($ 785 million), Kenney said.

In March, the Kenney government agreed to finance the first year of construction with an investment of $ 1.1 billion and guarantee loans of $ 4.2 billion as a way to start construction.

The province and TC Energy have a “solid legal basis” to recover damages through the courts, Kenney also said.

‘Top priority’

Canadian Energy Minister Seamus O’Regan said the federal government continues to support Keystone XL and will support the project with the Biden administration.

“Canadian oil is produced under strong environmental and climate policy frameworks, and this project will not only strengthen the vital Canada-US energy relationship, but will create thousands of good jobs for workers on both sides of the border,” he said. say O’Regan in email.

Kenney stressed that the federal government had said the pipeline is “the top priority” of Canada’s relationship with the US

“Sit back and review the many facts that have changed since KXL was proposed a decade ago,” said Kenney, who cited the reduction of carbon emissions from oil sands, labor agreements and indigenous participation in the gas pipelines.

With more than a decade to go, the Keystone XL project was first rejected by former President Barack Obama because of concerns about climate change, but his successor Donald Trump issued a new permit when he took office.

The Canadian Oil Producers Association said canceling the project would kill thousands of jobs and offered to work with stakeholders to find a solution to complete the pipeline.

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