TC Energy Corp on Tuesday said that it would proceed with the construction of the Keystone XL Pipeline Project after receiving financial support of about $8 billion from the Province of Alberta. The financial support deal includes $1.1 billion investment as equity in the project and $6.9 billion in capital investment in 2021 and 2022.
The proposed 1,947-kilometer Keystone XL Pipeline will connect Hardisty, Alberta, to Steele City, Nebraska, and can ship up to 830,000 bpd of crude oil. The pipeline will link to TC Energy’s existing infrastructure in Steele City to reach refiners in the US Gulf Coast, the company said. The Government of Alberta, on its website, said the construction would start soon in the province, as well as in the state of Montana, South Dakota, and Nebraska.
TC Energy expects to start operation of the new pipeline in 2023. The company said it had reached new 20-year deals for 575,000 bpd of the capacity, which will support the project. When the facility begins service, TC Energy will shift the current contracts for 115,000 bpd on the existing Keystone to the new pipeline under 20-year contracts.
