By Greg Stohr
“TC Energy remains committed to the future of this project,” the company said in a statement. “We will continue to evaluate our 2020 U.S. scope. In Canada, our work in 2020 remains unchanged.”
U.S. District Judge Brian Morris’s order, which concerned a nationwide permit the Army Corps of Engineers uses to approve water crossings, required projects across the country to seek more time-consuming and expensive individual permits.
Dakota Access Oil Line to Be Shut by Court in Blow for Trump
The Trump administration urged the court to block Morris’s order while the case is on appeal. The rejection is a setback for the government of the oil-dependent Canadian province of Alberta, which has committed $5.3 billion to help fund the pipeline’s construction.
Keystone XL is a key project for Canadian oil-sands producers that have been hamstrung for years by a lack of pipeline capacity. The line would help carry 830,000 barrels of crude a day along a 1,200-mile, (1,900-kilometer) route from the Alberta oil hub of Hardisty to Steele City, Nebraska. From there, the oil would travel to U.S. Gulf Coast refineries that are geared to process the heavy oil-sands crude.
The project has been on TC Energy’s drawing board for more than a decade after being repeatedly stalled by opposition from landowners and environmentalists who say it will contribute to catastrophic climate change. President Barack Obama rejected the pipeline’s border-crossing permit in 2015, a decision that Trump reversed shortly after taking office.
Alberta’s government announced its investment in Keystone XL in March to help finance the $8 billion project’s construction. The aid consists of a $1.1 billion investment and a $4.2 billion loan guarantee. TC Energy will fund the remaining $2.7 billion. TC has projected the line could enter service in 2023.
The case is U.S. Army Corps of Engineers v. Northern Plains Resource Council, 19A1053.