The $1.5 billion investment in TC Energy’s Keystone XL pipeline will be made this year and will backstop the project with a $6 billion loan guarantee in 2021..“The government is backstopping the project to enable TC Energy to begin immediate construction on the Alberta portion of the pipeline,” the early morning press release stated..“This will ensure the earliest possible date of completion (of 2023).”.TC Energy will repay the Alberta government once oil is flowing, according to the release..“We cannot wait for the end of the pandemic and the global recession to act,” Alberta Premier Jason Kenney said..“There are steps we must make now to build our future focussed [sic] on jobs, the economy, and pipelines.”.TC Energy said the project will “lead to thousands of new jobs, billions in economic stimulus and enhanced North American energy security.”.The project will result in approximately US$8 billion investment into the North American economy according to the release from TC Energy..“We appreciate the ongoing backing of landowners, customers, Indigenous group and numerous partners in the U.S. and Canada who helped us secure project support and key regulatory approvals as this important energy infrastructure project is poised to put thousands of people to work, generate substantial economic benefits and strengthen the continent’s energy security,” said Russ Girling, TC Energy’s president and chief executive officer..“In addition, we thank U.S. President Donald Trump and Alberta Premier Jason Kenney as well as many government officials across North America for their advocacy without which, individually and collectively, this Project could not have advanced.”.Girling added that TC Energy would continue to “take guidance from all levels of government and health authorities” to ensure the safety of staff and communities during the current pandemic..“Construction will advance only after every consideration for the health and safety of our people, their families, and of those in the surrounding communities has been taken into account,” Girling said..The KXL project has previously secured transportation agreements for 575,000 Bbl/day for 20 years but has been delayed multiple times over opposition and court battles, mostly in the U.S. President Trump has approved the project by special declaration twice over the past four years..The project will move product from Hardisty, in east central Alberta, to Steele City, Nebraska, where it will then move through TC Energy’s existing lines to be transported to the Gulf Coast refineries..“As part of the funding plan, the Government of Alberta has agreed to invest approximately US$1.1 billion as equity in the Project, which substantially covers planned construction costs through the end of 2020,” TC Energy’s release said..“The remaining capital investment of approximately US$6.9 billion is expected to be largely made in 2021 and 2022 and funded through the combination of a US$4.2 billion project level credit facility to be fully guaranteed by the Government of Alberta and a US$2.7 billion investment by TC Energy.”.Premier Jason Kenney had promised additional government spending in Alberta’s oil and gas sector in the lead up to the release of Alberta’s budget..Kenney recently demanded more money from the federal government to prop up the sector which was sidelined by increased production from Saudi Arabia and Russia in mid-March..“Today we are moving forward with a project that is essential to our future prosperity,” Kenney said..“This investment in Keystone XL is a bold move to retake control of our province’s economic destiny and put it firmly back in the hands of the owners of our natural resources, the people of Alberta.”.Kenney said his government is confident in the investment and believes the province will be able to sell its shares “at profit.”.Western Canada Select (WCS) has been trading at historic lows of less than US$5/bbl in March and West Texas Intermediate (WTI) has been battered down to US$20/bbl amid the “predatory dumping” of oil by Saudi Arabia..On March 28 the Alberta Premier said he is trying to broker a deal with U.S. officials that will effectively close the borders to Saudi and Russian oil. The U.S. became the world’s number one exporter of oil in 2017, which caused OPEC to strike a deal with Russia to voluntarily decrease production to maintain oil prices..That deal was set to expire at the end of March this year..Deirdre Mitchell-MacLean is a Senior Reporter with Western Standard.dmaclean@westernstandardonline.com.Twitter @Mitchell_AB
The $1.5 billion investment in TC Energy’s Keystone XL pipeline will be made this year and will backstop the project with a $6 billion loan guarantee in 2021..“The government is backstopping the project to enable TC Energy to begin immediate construction on the Alberta portion of the pipeline,” the early morning press release stated..“This will ensure the earliest possible date of completion (of 2023).”.TC Energy will repay the Alberta government once oil is flowing, according to the release..“We cannot wait for the end of the pandemic and the global recession to act,” Alberta Premier Jason Kenney said..“There are steps we must make now to build our future focussed [sic] on jobs, the economy, and pipelines.”.TC Energy said the project will “lead to thousands of new jobs, billions in economic stimulus and enhanced North American energy security.”.The project will result in approximately US$8 billion investment into the North American economy according to the release from TC Energy..“We appreciate the ongoing backing of landowners, customers, Indigenous group and numerous partners in the U.S. and Canada who helped us secure project support and key regulatory approvals as this important energy infrastructure project is poised to put thousands of people to work, generate substantial economic benefits and strengthen the continent’s energy security,” said Russ Girling, TC Energy’s president and chief executive officer..“In addition, we thank U.S. President Donald Trump and Alberta Premier Jason Kenney as well as many government officials across North America for their advocacy without which, individually and collectively, this Project could not have advanced.”.Girling added that TC Energy would continue to “take guidance from all levels of government and health authorities” to ensure the safety of staff and communities during the current pandemic..“Construction will advance only after every consideration for the health and safety of our people, their families, and of those in the surrounding communities has been taken into account,” Girling said..The KXL project has previously secured transportation agreements for 575,000 Bbl/day for 20 years but has been delayed multiple times over opposition and court battles, mostly in the U.S. President Trump has approved the project by special declaration twice over the past four years..The project will move product from Hardisty, in east central Alberta, to Steele City, Nebraska, where it will then move through TC Energy’s existing lines to be transported to the Gulf Coast refineries..“As part of the funding plan, the Government of Alberta has agreed to invest approximately US$1.1 billion as equity in the Project, which substantially covers planned construction costs through the end of 2020,” TC Energy’s release said..“The remaining capital investment of approximately US$6.9 billion is expected to be largely made in 2021 and 2022 and funded through the combination of a US$4.2 billion project level credit facility to be fully guaranteed by the Government of Alberta and a US$2.7 billion investment by TC Energy.”.Premier Jason Kenney had promised additional government spending in Alberta’s oil and gas sector in the lead up to the release of Alberta’s budget..Kenney recently demanded more money from the federal government to prop up the sector which was sidelined by increased production from Saudi Arabia and Russia in mid-March..“Today we are moving forward with a project that is essential to our future prosperity,” Kenney said..“This investment in Keystone XL is a bold move to retake control of our province’s economic destiny and put it firmly back in the hands of the owners of our natural resources, the people of Alberta.”.Kenney said his government is confident in the investment and believes the province will be able to sell its shares “at profit.”.Western Canada Select (WCS) has been trading at historic lows of less than US$5/bbl in March and West Texas Intermediate (WTI) has been battered down to US$20/bbl amid the “predatory dumping” of oil by Saudi Arabia..On March 28 the Alberta Premier said he is trying to broker a deal with U.S. officials that will effectively close the borders to Saudi and Russian oil. The U.S. became the world’s number one exporter of oil in 2017, which caused OPEC to strike a deal with Russia to voluntarily decrease production to maintain oil prices..That deal was set to expire at the end of March this year..Deirdre Mitchell-MacLean is a Senior Reporter with Western Standard.dmaclean@westernstandardonline.com.Twitter @Mitchell_AB
