Home Uncategorized TC Energy company behind Keystone XL pipeline seeks $ 15 billion in damages from Biden administration

TC Energy company behind Keystone XL pipeline seeks $ 15 billion in damages from Biden administration

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The Canadian company behind the now-defunct Keystone XL pipeline is seeking $ 15 billion in damages from the US government for President Biden’s decision to take the huge infrastructure project offline.

TC Energy Announced On Friday he filed a Notice of Intent to make an inherited claim under the North American Free Trade Agreement (NAFTA) as part of the United States-Mexico-Canada Agreement for damages ‚Äúresulting from the revocation of the Keystone XL Project Presidential Permit . “

“TC Energy will seek to recover more than $ 15 billion in damages it has suffered as a result of the US government’s failure to comply with its NAFTA obligations,” the Calgary-based company said in a statement. “The Notice of Intent was filed with the Office of the Legal Counsel of the US Department of State.”

Last month, TC Energy ended its 13-year battle to build the $ 9 billion addition with 830,000 barrels a day of crude oil from Alberta to the US Gulf Coast after Biden rescinded the 2017 cross-border permit. as part of its climate agenda. on January 20, his first day in office.

Construction had already begun on the 1,200-mile segment from Hardisty, Alberta, to Steele City, Nebraska, where it was scheduled to connect to the existing Keystone pipeline system that delivers oil to refineries in the Houston area.

The Alberta government, which had agreed to invest $ 1.5 billion in the project, suffered a loss of $ 1.3 billion from the cancellation of the pipeline, according to the CBC.

In May, a coalition of 21 Republican attorneys general sued the Biden administration for its “unconstitutional and illegitimate attempt to cancel the Keystone XL Pipeline,” arguing that the power to regulate foreign and interstate commerce belongs to Congress.

Democrats and environmentalists applauded Biden’s order, citing the impact of fossil fuels on rising atmospheric carbon dioxide, while Republicans said the cancellation killed an estimated 11,000 direct construction jobs and 42,000 indirect jobs with a loss of $ 2 billion in profit.

In May, TC Energy reported a net loss of $ 1.1 billion in the first quarter after assuming an after-tax asset impairment charge of $ 2.2 billion arising from the cancellation of the Keystone XL permit.

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