An 80,000 b/d offering of delivery service on an 11-year-old Canadian pipeline to the United States has been discarded as a casualty of President Biden’s decision to stop the proposed Keystone XL addition to the oil trade network.
TC Energy Corp. said the offer was canceled because the project’s cancellation means no spare capacity would open up on the original 600,000 b/d Keystone line from Alberta to the Patoka oil hub in Illinois.
The discarded offer, an open-season contract sale launched Jan. 6, was meant to keep the 600,000 b/d Keystone full as oil exports migrated to 830,000 b/d Keystone XL.
Last month, TC Energy halted Keystone XL work in anticipation that Biden would revoke the permit, which occurred on Jan. 20. The Calgary firm and Alberta government, which provided CDN$1.5 billion (US$1.1 billion) to build the project’s Canadian leg in advance, continue to consider seeking U.S. compensation.
After taking office, Biden immediately signed a series of executive orders (EO) including one titled “Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis.”
The EO revoked the presidential permit issued by President Trump in March 2019 for Keystone XL. The permit was granted to TC, then TransCanada Corp., allowing the company to “construct, connect, operate and maintain pipeline facilities at the international border of the United States and Canada.”
Despite Biden’s action, Canadian Prime Minister Justin Trudeau promised to cooperate with Biden on climate change.
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