North American energy infrastructure company TC Energy has announced its decision to proceed with the construction of the long-delayed $8bn Keystone XL (KXL) Pipeline Project, amid plunging oil prices.
The move follows the signing of financing agreement by the Government of Alberta to help accelerate the construction of the KXL cross-border crude oil pipeline project.
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The Government of Alberta has agreed to provide $1.5bn in equity investment in 2020 and a further $6bn loan guarantee in 2021 for the project, which is planned to be commissioned in 2023.
The 1,947km-long pipeline will have the capacity to transport 830,000 barrels per day (Bbl/day) of crude oil from Hardisty, Alberta to Gulf Coast Refineries.
Expected to create over 1,400 direct and 5,400 indirect jobs in Alberta during the construction phase, the pipeline will feature supervisory control and data acquisition (SCADA) and leak detection systems.
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Alberta Premier Jason Kenney said: “We cannot wait for the end of the pandemic and the global recession to act. There are steps we must make now to build our future focussed on jobs, the economy, and pipelines.
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By GlobalData“Today we are moving forward with a project that is essential to our future prosperity. This investment in Keystone XL is a bold move to re-take 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.
“In addition, the project will have a net return of over $30 billion to the Alberta taxpayer through royalties and higher prices for Alberta oil in the next 20 years.”
The pipeline will emerge from the oil terminal at Hardisty, Alberta, and traverse through Montana and South Dakota before connecting the existing Keystone Pipeline system at Steele City, Nebraska.
TC Energy is currently undertaking pre-construction activities at the project, which is scheduled to enter the construction phase shortly.
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The cross-border pipeline will deliver crude oil from Hardisty, Alberta to Gulf Coast Refineries. (Credit: shannonpatrick17 from Swanton, Nebraska, U.S.A./Wikipedia)
