Biden Revokes KXL Permit

Reuters

(Reuters) — U.S. President Joe Biden on Wednesday formally revoked the permit needed to build the Keystone XL oil pipeline (KXL), dashing hopes of salvaging the project that the struggling Canadian crude sector has long supported.

The move represents another set-back for the beleaguered Canadian energy industry, kills thousands of jobs and marks an early bump in Biden’s relationship with Canada, a key trading partner. Biden had long promised to scrap the permit.

Kirsten Hillman, Canada's ambassador to Washington, told CTV that Ottawa was “very disappointed.” Foreign Minister Marc Garneau, speaking minutes earlier, took a more muted tone, telling CTV that Canada respected and understood the decision.

Keystone XL, owned by TC Energy Corporation, would have carried 830,000 bbls/d of Alberta oilsands crude to Nebraska. Opposition from U.S. landowners, Native American tribes and environmentalists has delayed the project for the past 12 years.

Former President Donald Trump revived the project, but it still faced ongoing legal challenges.

TC Energy, in a statement issued before the revocation, expressed disappointment with a move it said would overturn a regulatory process that had lasted more than a decade.

The company said it will suspend construction and warned there could be a “substantive” predominantly non-cash, after-tax charge to earnings in the first quarter of 2021. TC Energy said the decision would lead to layoffs for thousands of unionized construction workers.

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