TC Energy pulls the plug on Keystone XL pipeline

TC Energy officially cancelled its 830,000 b/d Keystone XL crude pipeline project today, after US President Joe Biden rescinded a key cross-border permit earlier this year.

The company made the decision after a comprehensive review of its options and in consultation with its partner, the government of Alberta, Canada, TC Energy said today.

The cancellation is a victory for environmental groups which have fought the project for more than a decade.

TC Energy suspended construction on the $8bn Keystone XL earlier this year and took a $1.8bn (C$2.2bn) after-tax impairment in the first quarter related to the project.

"The company will continue to coordinate with regulators, stakeholders and Indigenous groups to meet its environmental and regulatory commitments and ensure a safe termination of and exit from the project," TC Energy said.

The company installed about 90 miles (145km) of Keystone XL pipe in Canada in 2020 but none in the US except for a 1.2-mile border crossing.

TC Energy proposed the project more than a decade ago to offer another option to move western Canadian crude to the US. The line would have moved crude from Hardisty, Alberta, to Steele City, Nebraska, where it would have connected with other TC Energy pipelines to Cushing, Oklahoma, and the southeast Texas coast.

The project was first proposed in 2008, but it has been delayed repeatedly. Former US president Barack Obama in 2015 blocked Keystone XL after years of review, citing environmental concerns. The project was revived in 2017, with a cross-border permit from former president Donald Trump's administration.

The project was delayed again last year when a US district court vacated a key water permit.

By Eunice Bridges