The Canadian energy infrastructure group TC Energy will start the construction of its US$8bn Keystone XL Pipeline, that will 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 construction of a 2 km segment crossing the US-Canada border could begin in April 2020. The company would then build pumping stations along the pipeline route as of June 2020, along with a pipeline segment in Nebraska, before starting to build segments in Montana and South Dakota in August 2020. Work would continue in 2021 and the pipeline is expected to be commissioned in 2023.
TC Energy has already signed 20-year transport service agreements for 575,000 bbl/d. Once the project enters operations, currents contracts for 115,000 bbl/d on the existing Keystone line will switch to the new pipeline. In addition to a US$1.1bn investment as equity in the project from the Government of Alberta, the oil pipeline will be funded through the combination of a US$4.2bn loan to be fully guaranteed by the Government of Alberta and a US$2.7bn investment by TC Energy. The project is opposed by environmental groups, Native American tribes and some landowners.