The newly-elected US President has decided to revoke the Presidential permit granted to the Keystone XL pipeline, which is developed the Canadian energy infrastructure group TC Energy and was expected to be commissioned in 2023. TC Energy may appeal the decision, as the group did after a first presidential veto in 2015.
The Keystone XL Pipeline was first proposed in 2008 and was expected to transport 830,000 bbl/d of Alberta oil sands (Canada) through Steele City in Nebraska (United States) to the Mexico Gulf coast refiners over an 1,897 km route. The US$8bn pipeline project was financed by TC Energy (US$2.7bn) and the government of Alberta (Canada) (US$1.1bn equity plus a full guarantee on a US$4.2bn loan). The controversial project has been repeatedly delayed and received a presidential veto in 2015. However, the new administration approved the pipeline permit in March 2017, but it still faced opposition from landowners, environmental groups, and first nations. In April 2020, the District Court of Montana cancelled a nationwide permit issued by the US Army Corps of Engineers in 2017 and allowing the Keystone XL Pipeline to cross water bodies and in July 2020, the US Supreme Court denied a fast-track construction permit for the project.
In addition, the US Federal Energy Commissions (FERC) has confirmed Oregon’s refusal for a clean water permit for the Jordan Cove liquefied natural gas (LNG) project. The proposed 7.8 Mt/year (10.5 bcm/year) LNG terminal would receive gas from the Malin Hub in southern Oregon through a 1 bcf/d (10.3 bcm/year) gas pipeline and from Canada and would be allowed to export up to 1.08 bcf/d (30.5 mcm/d or 11.1 bcm/year) of LNG. The Jordan Cove LNG project was initially developed by Veresen, which sold it to Pembina in late 2017. In February 2020, the state government of Oregon denied permits to the LNG project on the basis of environmental consideration but in March 2020, the US Federal Energy Regulatory Commission (FERC) issued a certificate of approval for Jordan Cove LNG terminal and 369-km Pacific Connector Gas Pipeline.