Canadian leaders are vowing to rescue TC Energy Corp.’s Keystone XL (KXL) — or sue for damages — from a plan for incoming President Biden to cancel the U.S. presidential permit for the $8 billion oil export pipeline project.

Keystone XL

KXL stands out as an 830,000 b/d growth enabler for Canada’s top natural gas user, Alberta thermal oilsands operations, with a 1,688 kilometer (1,013 mile) leg to heavy crude refineries on the Texas coast. TC now is gauging interest to add up to 80,000 b/d of new oil capacity to the system.

The Alberta premier has reacted swiftly to a Biden transition team agenda item set to be enacted by the new president on Wednesday, his first day in office, to revoke the permit granted by President Trump. Last May, Biden had pledged to revoke the KXL permit after...