TC Energy announced Friday that it intends to recover more than $ 15 billion in damages related to its Keystone XL project.
United States President Joe Biden revoked the existing presidential permit for the Keystone XL pipeline on January 20, 2021.
As a result, TC Energy has suspended project progress and is evaluating the implications and available options.
The company reported that a notice of intent was filed to initiate an inherited claim from NAFTA under the USMCA.
«TC Energy will seek to recover more than $ 15 billion in damages it has suffered as a result of the United States government’s failure to comply with its NAFTA obligations,» the company said in a statement.
During 2020 and 2021, TC Energy achieved the following milestones towards the advancement of the pipeline:
- It announced that it would proceed with construction on the Keystone XL, which began in April 2020 in both the United States and Canada.
- It completed the border crossing between the United States and Canada on the Keystone XL pipeline in June 2020.
- Executed a Project Labor Agreement with four pipeline unions (operating engineers, laborers, truck drivers, and United Association) to utilize 100% unionized labor in the construction of the pipeline.
- Announced that the pipeline would operate with zero net emissions once commissioned and would use 100% green energy by 2030 to power operating pump stations.
- Entered into a deal whereby the Government of Alberta invested approximately $ 800 million in stock in Keystone XL as of December 31, 2020.
- Executed a US $ 4.1 billion line of credit, guaranteed by the Government of Alberta and without recourse to us, to partially finance the construction of Keystone XL
- Executed definitive agreements with Natural Law Energy, a consortium of five Canadian First Nations, for a potential investment of up to $ 1 billion of equity investment in Keystone XL and future liquid projects.
The pipeline project spans 1,200 miles to transport crude from Hardisty, Alberta, to Steele City, Nebraska.
While President Barack Obama rejected the pipeline project in his administration in 2015, President Donald Trump approved it days after taking office in 2017.
Later, Biden revoked the presidential permit for the project on his first day in office.