TC Energy Corp. called an immediate halt today to work on Keystone XL (KXL) as President Biden was expected to keep an election promise to revoke the U.S. construction permit for the $8 billion oil pipeline on Wednesday.

Keystone XL

“Advancement of the project will be suspended,” said the Calgary firm. Unless attempts to recover costs to date succeed, the halt “could result in a substantive, predominantly noncash after-tax charge to earnings in first quarter 2021,” said TC.

While Alberta Premier Jason Kenney said only days ago that a strong legal claim existed for damages from the U.S. government, the pipeline company’s management team made no predictions and stopped short of declaring a commitment to launch a lawsuit.

Instead of specifying next steps, “TC Energy will review...