The Canadian operator in charge of its construction noted the White House’s opposition to the project, which will deliver 800,000 barrels of oil per day in 2023.
The first point of contention between Justin Trudeau and Joe Biden About five months ago, the controversial Keystone XL oil between Canada and the United States condemned by environmentalists The pipeline project was officially abandoned on Wednesday, June 9. “TC Energy confirmed today after conducting a comprehensive review of its options and consulting with its partner Alberta government that it has terminated the Keystone XL pipeline project.”, Announced the Canadian operator in a press release.
The Canadian group announced its suspension of work a few hours before Mr. Biden signed the decree on January 20th.The team based in Calgary, western Canada, expressed disappointment and announced plans accordingly “Fired thousands of union workers”. For its part, the Alberta government has stated that it has also withdrawn from the project and said “Explore all options” According to the press release, to recover his investment. The province estimates that the cost of abandoning the project should be 1.3 billion Canadian dollars (881 million euros).
“We remain disappointed and frustrated with the situation around Keystone XL, including the cancellation of the presidential permit that allows the pipeline to cross the border.”, Regrets Governor Jason Kenny. Alberta has concentrated most of the country’s oil reserves, which is Canada’s main export product. This project, supported by Ottawa but criticized by environmentalists, was launched in 2008. Barack Obama canceled it for the first time because it was deemed too polluted, and Donald Trump was back on track for economic reasons.
The revocation of his predecessor’s decree is one of Joe Biden’s campaign promises and is part of his climate change plan. This also caused the disappointment of Canadian Prime Minister Justin Trudeau, who promised to complete pipelines such as Keystone XL in order to bring Canadian oil to other markets and obtain better prices.
Canada has the world’s third-largest proven reserves, mainly contained in the oil sands in the west, and its mining has been criticized for its environmental impact. Experts said that the oil-rich provinces of Alberta and Saskatchewan (center), which have been affected by the drop in oil prices, should pay a high price for abandoning the project.
By 2023, the latter will allow more than 800,000 barrels of oil to be transported daily between Alberta, Canada and US refineries in the Gulf of Mexico. However, according to environmentalists, this will lead to excessive greenhouse gas emissions. Last year, TC Energy resumed the construction of the 1,947-kilometer-long pipeline between the Canadian border and Nebraska in the north, and the construction from the south to Texas has been completed. TC Energy estimates the cost of this work to be 9.1 billion U.S. dollars (7.5 billion euros).
Keystone is not the only object of disagreement between Canada and the United States in this area. Last month, Ottawa announced that it had taken action against the United States to prevent Michigan’s decision to order the closure of Canada’s Enbridge cross-border pipeline. “worry” Justin Trudeau.
This intervention in Ottawa came after Michigan Governor Gretchen Whitmer ordered Onkyo to close pipeline line 5 on May 12, also for environmental reasons. This cross-border pipeline transports as many as 540,000 barrels of oil and natural gas daily from Western Canada to Ontario, Quebec and several states in the United States.