US President-elect Joe Biden during his campaign earlier this year vowed to block the construction of TC Energy Corp’s Keystone XL oil pipeline. The project was vetoed by former President Barack Obama in 2015, saying it would emit additional greenhouse gas. His successor, Donald Trump, issued a presidential permit in 2017 that enabled TC to proceed with the construction. However, this prompted legal challenges from US environmental groups. TC is still battling a slew of legal challenges. In July, the US Supreme Court left in place a ruling by a district judge in Montana that blocked a federal permit for dredging work on the project across water bodies.
The $9-billion Keystone XL will ship crude oil from the Canadian province of Alberta to Nebraska in the US. The construction in the Canadian portion is well underway. TC even secures a C$1 billion ($764.35 million) investment from Natural Law Energy (NLE), a coalition of indigenous people in Saskatchewan and Alberta whose traditional lands are crossed by Keystone XL. TC has commenced construction of pump stations in each US state the pipeline will cross. However, it faces setbacks due to legal challenges from US environmental groups.
TC and Alberta are working to convince Biden to approve the project. TC said the Keystone XL project could create many jobs, framing it in line with Biden’s Build Back Better economic plan. TC is trying to make the project more politically palatable by awarding construction work of the project to four US unions. The company is also looking for equity investments from US indigenous groups. Failing to secure Biden’s permit will be a massive blow for TC because it will trigger Canadian shippers to divert more volumes to rival Enbridge’s Mainline.
