Construction of the Keystone XL oil pipeline extension is being halted ahead of US President Joe Biden's expected decision to revoke the existing presidential permit, the pipeline's parent company, TC Energy, said in a statement on Wednesday
TORONTO (Pakistan Point News / Sputnik - 20th January, 2021) Construction of the Keystone XL oil pipeline extension is being halted ahead of US President Joe Biden's expected decision to revoke the existing presidential permit, the pipeline's parent company, TC Energy, said in a statement on Wednesday.
Biden's list of tasks for Inauguration Day on January 20 includes signing an executive order to rescind the Keystone XL construction permit granted in 2019 by outgoing President Donald Trump, according to documents obtained by the Canadian Press on Sunday.
"As a result of the expected revocation of the Presidential Permit, advancement of the project will be suspended. The company will cease capitalizing costs, including interest during construction, effective January 20, 2021," the statement said.
TC Energy - formerly the TransCanada Corporation - said it is disappointed by Biden's decision and added that it will be modifying its financing plans going forward.
The Canadian government is expected to contest the decision, with Canadian Prime Minister Justin Trudeau, a supporter of the project, telling reporters on Tuesday that his government will lobby the "highest levels" of the incoming Biden administration in a bid to salvage the pipeline extension project.
The Keystone is an oil pipeline system that moves Alberta crude oil from the Canadian town of Hardisty to refineries and tank farms in the US states of Illinois, Oklahoma and Texas. The first three phases of the system are currently operational, however, the construction of the fourth phase, better known as Keystone XL, which is planned to transport oil to the US state of Nebraska, has caused a major uproar on both sides of the border.
In September, the US Supreme Court rejected a request from the Trump administration and TC Energy to dismiss a lower court ruling blocking further construction of the pipeline because of a violation related to a water-crossing permit.