TC Energy has officially cancelled the Keystone XL oil pipeline project, which had been facing hurdles for more than 12 years and the revocation of the Presidential Permit granted to the project in the United States in January 2021.
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 US administration approved the pipeline permit in March 2017, expecting commissioning in 2023, but it still faced opposition from landowners, environmental groups, and first nations. Finally, the Presidential Permit of 2017 was revoked by the newly-elected president in January 2021.