tower ad March 2021 (left)
tower ad March 2021 (right)

Biden revokes permit, Keystone XL suspended

US President Joe Biden has revoked the Presidential Permit previously granted to the Keystone XL Pipeline on his first day in office.

The 1,947 km pipeline has the capacity to deliver 830,000 Bbl/day of crude oil from Hardisty, Alberta to Steele City, Nebraska, where it will connect to existing facilities to reach US Gulf Coast refiners.

The Keystone XL project has long been subject to dispute, with environmentalist groups citing it as a hazard, stating clearing and tree felling along the route would destroy bird and wildlife habitat.

In 2015, these environmental concerns saw former US President Barack Obama reject the pipeline; however, it was then granted a Presidential Permit to go ahead in 2017 by former President Donald Trump.

After President Biden’s revocation of the permit, Keystone XL owner-operator TC Energy announced its disappointment and said the decision will lead to the layoff of thousands of workers and negatively impact commitments to new renewable energy.

The advancement of the project has now been suspended with TC Energy ceasing capitalising costs, including interest during construction, effective as of 20 January 2021.

TC Energy said the decision overturns an unprecedented, comprehensive regulatory process that has lasted more than a decade and has repeatedly concluded the pipeline would transport much needed energy in an environmentally responsible way while enhancing North American energy security.

The company will now review the decision, assess the implications and consider its options.

For more information visit the TC Energy website.

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