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Alberta Government, TC Energy reach agreement to terminate Keystone XL Pipeline Project

Last Updated Jun 9, 2021 at 8:45 pm MDT

CALGARY — The Alberta government and TC Energy have reached an agreement for an “orderly exit” from the Keystone XL Pipeline Project as well as the partnership between the two.

The move comes after the presidential permit approving the project was revoked back in Jan. 2021.

WATCH: Worries grow after reports show Biden plans to cancel the Keystone XL Pipeline

“We remain disappointed and frustrated with the circumstances surrounding the Keystone XL project, including the cancellation of the presidential permit for the pipeline’s border crossing,” Alberta premier Jason Kenney said in a release. “Having said this, Alberta will continue to play an important role in a reliable, affordable North American energy system. We will work with our U.S. partners to ensure that we are able to meet U.S. energy demands through the responsible development and transportation of our resources.”

RELATED: Does Canada need another pipeline, feds ask days after Biden cancels Keystone XL

TC Energy says it will be working with regulators, stakeholders and Indigenous groups to ensure a safe termination, and exit, from the Project.

“Through the process, we developed meaningful Indigenous equity opportunities and a first-of-its-kind, industry leading plan to operate the pipeline with net-zero emissions throughout its lifecycle,” said TC Energy’s President and Chief Executive Officer, François Poirier. “We will continue to identify opportunities to apply this level of ingenuity across our business going forward, including our current evaluation of the potential to power existing U.S. assets with renewable energy.”

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The Alberta government expects losses to be within the range of $1.3B.

“The cancellation of the Keystone XL pipeline extension is devastating. At a time when Canadians are desperate to get back to work, the loss of this important project only makes this harder,” said federal Conservative party leader Erin O’Toole.  “Today’s decision is a culmination of the Trudeau Liberals’ failure to recognize the importance of pipeline projects and the need to secure Canadian jobs in the resource sector.”

“We invested in Keystone XL because of the long-term economic benefits it would have provided Albertans and Canadians,” said Minister of Energy Sonya Savage. “However, terminating our relationship with TC Energy’s project is in the best interest of Albertans under current conditions.

“We remain undeterred in our commitment to stand up for Alberta’s energy sector and the hard-working people it employs.”

To date, around 150km of pipeline has been installed in Alberta — while employing more than 1,600 workers during peak construction periods.