TC Energy going ahead with Keystone XL Pipeline as Alberta invests US$1.1 billion

The company formerly known as TransCanada says with pre-construction activities underway, the pipeline is expected to enter service in 2023.

Once the project is complete and in service, TC Energy expects to acquire the Alberta government’s equity investment under agreed terms and conditions and refinance the US$4.2-billion credit facility in the debt capital markets.

“Strong commercial and financial support positions us to prudently build and fund the project, along with our existing $30 billion secured capital program, in a manner that is consistent with maintaining our strong financial position and credit metrics,” TC Energy chief executive Russ Girling said in a statement.

The project was first proposed more than a decade ago but has faced numerous hurdles and had been rejected by the Obama administration.

However, U.S. President Donald Trump has worked to revive the project and been a strong backer of the pipeline.

“We appreciate the ongoing backing of landowners, customers, Indigenous groups and numerous partners in the U.S. and Canada who helped us secure project support and key regulatory approvals,” Girling said.

“In addition, we thank U.S. President Donald Trump and Alberta Premier Jason Kenney as well as many government officials across North America for their advocacy without which, individually and collectively, this project could not have advanced.”

““We cannot wait for the end of the pandemic and the global recession to act. There are steps we must make now to build our future focussed on jobs, the economy, and pipelines,” Kenney said in a statement. “This investment in Keystone XL is a bold move to re-take control of our province’s economic destiny and put it firmly back in the hands of the owners of our natural resources, the people of Alberta.”

“This is good news for our oil and gas industry,” said Seamus O’Regan, Canada’s Minister of Natural Resources. “It comes at a time when the industry needs it. It means thousands of good, well-paying jobs for the highly-skilled workers the industry needs now and into the future.

“The Government of Canada has always been a strong supporter of Keystone XL. The project increases our market access – safely, responsibly, and sustainably — and fits within Canada’s climate plan.”

Premier Kenney shared the following video Tuesday morning discussing the new Keystone XL Pipeline investment.

Rick More, CEO of the Red Deer and District Chamber of Commerce admits the announcement comes as a surprise, but adds it’s certainly a welcome one.

“It’s such a confidence boost for the oil and gas industry and the much-needed royalties that the province will get for years to come,” says More. “During these tough times with COVID, we have to obviously concentrate on day-to-day updates and issues. But I think we need to have that visionary input to help give that economic boost going into the future, and when this is all said and done, we need to have things like this news, to fire up this economy.”

More adds however, it’s a frustrating situation to see the current price of oil so low.

“We obviously have to get to the point of being more self-sufficient in trading with our neighbours to the south,” declares More. “This is somewhat of a gamble considering there’s an election in the U.S. coming up this year. Hopefully it won’t get stopped again.”

More anticipates many lessons to be learned once the COVID pandemic is over.

“There’s lots of things that are happening because of this,” he explains. “There will be changes in everything we do and diversification is one of them, but the energy sector is still going to be so important to what we do in the next couple of decades for sure. These are news items that we need at the moment and we need to ensure our survival going forward.”

by Canadian Press

TC Energy going ahead with Keystone XL Pipeline as Alberta invests US$1.1 billion

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