The promoter of the Keystone XL pipeline expansion project, TC Energy, suspended construction on Wednesday, shortly before the expected revocation of its license by the President-elect of the United States, Joe Biden.
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The one who succeeds Donald Trump has planned to cancel, from day one of his presidency, the authorization allowing the project to go ahead.
After his induction on Wednesday morning, Biden intends to sign a presidential decree to that effect, his team confirmed in a statement.
TC Énergie did not wait for this moment to announce that it was putting its work on hold.
“TC Energy will review the decision, assess its implications and consider its options. However, due to the expected revocation of the presidential permit, the progress of the project will be suspended, ”it was said in a statement on Wednesday morning.
“The company will stop capitalizing costs, including interest during construction, effective January 20, 2021 […] and assess the book value of its investment in the pipeline, net of recoveries, ”continues the developer.
The pipeline supposed to carry oil from Alberta to Texas has been cleared by the Trump administration. President-elect Joe Biden, however, promised during the election campaign to reverse this decision and block the construction of the pipeline.
The Alberta government has a financial interest in the realization of this project, since it is a co-owner of TC Énergie.
He put $ 1.5 billion in the company, in addition to a loan guarantee of over $ 6 billion, which means that the Alberta Petroleum Marketing Commission, a provincial crown corporation, has committed to assume the pipeline construction debt.
Justin Trudeau’s federal government is also in favor of the project.
“Our government is ensuring that Canada’s point of view is heard and taken into consideration by the future administration, at the highest levels,” Prime Minister Trudeau said Tuesday.