Lawsuits likely if Biden cancels Keystone XL, Canadians warn

CALGARY — Billions of dollars in lawsuits will likely result if Joe Biden is elected U.S. president this November and carries out a threat to cancel the presidential permit allowing operation of the Keystone XL pipeline, Canadian observers said

The promised action by the leading U.S. Democratic Party candidate, confirmed by his campaign office, would also deprive U.S. Gulf Coast refineries of vital heavy oil, leaving them dependent on imports from countries such as Saudi Arabia and Venezuela, they add.

“This is all grandstanding and it doesn’t look good on the politicians,” said Hal Kvisle, a former CEO of TC Energy and current chairman of both the Business Council of Alberta and oil and gas producer ARC Resources Ltd.

“TC would have a multibilliondollar lawsuit against the U.S. government if they kill the project that’s already been approved.”

The company green-lighted Keystone XL on March 31 following the Alberta government’s pledge to take a $1.5-billion equity stake and provide a $6-billion loan guarantee to ensure work started immediately.

A month later, TC Energy said it would adjust its plans, but forge ahead with construction after a U.S. court ruling that invalidated a nationwide permit allowing pipelines to cross waterways.

The company on Tuesday extolled the virtues of Keystone XL as an engine of investment and jobs growth.

The Biden declaration represents a significant risk for the $8-billion US project and would likely result in Calgarybased TC Energy re-examining how prudent it is to continue, said financial analyst Jennifer Rowland of Edward Jones.

Alberta’s backing, however, mitigates the financial concern.

“I think it becomes potentially a little bit easier for TC to go ahead … they can gamble because it’s not their money,” she said in an interview.