Kenney pushes for Keystone amid crisis

TC Energy Corp.’s Keystone XL crude pipeline could be built by the first quarter of next year if the Biden administration were to reverse its decision to cancel the project.

Construction of the controversial pipeline, which would have raised Canada’s oilsands export capacity to the U.S. by almost 900,000 barrels a day, had already begun when the project was scrapped last year by U.S., Alberta Premier Jason Kenney said during a news conference. U.S. President Joe Biden cancelled a key permit for Keystone XL on his first day in office, citing environmental concerns.

Keystone XL has been controversial since it was proposed more than a decade ago because it would allow production to grow in carbon-intensive oilsands.

The U.S. government has been reaching out to major oil producers including Venezuela, which is under sanctions, to find replacements for Russian oil after that country’s invasion of Ukraine. It has also been working to restore a nuclear pact with Iran that would allow that country’s oil to return to the market. The U.S. would be better off turning to its northern neighbour for crude than seeking out “dictator oil,” Kenney said. The U.S. government would first need to financially “de-risk” the project before TC Energy would commit money to building the line after two previous cancellations, Kenney said.

The project was terminated by former U.S. president Barack Obama only to be revived by his successor Donald Trump before Biden killed the project again.

“During a disaster like this, national security and the interest of the economy must prevail,” the premier said. “I think there is a lot of creative ways that this could be addressed.”