Investment in infrastructure is vital to the safe, environmentally responsible and efficient transportation of Western Canadian oil and the improved access to markets by TC Energy moving forward on Keystone XL supports Alberta’s energy sector.
Export capacity is constrained by a lack of pipelines that contributes to massive price discounts on oil produced in Western Canada.
The Government of Alberta will provide financial support to accelerate construction of the pipeline in the province. The investment includes $1.5 billion in equity investment in 2020 and a $6 billion loan guarantee in 2021.
The shovel-ready project will create more than 1,400 direct and 5,400 indirect jobs in Alberta during construction and will generate an estimated $30 billion in tax and royalty revenues over 20 years, the Government of Alberta said.
“There are steps we must make now to build our future focused on jobs, the economy, and pipelines. Today we are moving forward with a project that is essential to our future prosperity,” said Alberta Premier Jason Kenney.
The pipeline will supply 830,000 barrels a day of oil to refineries on the U.S. Gulf Coast. It is expected to be in service in 2023. TC Energy said six scientific reviews by the U.S. Department of State concluded the project can be built and operated in an environmentally sustainable and responsible way.
“Our energy sector is a leader in safe and responsible resource development and this project supports investments by Calgary companies and gives them confidence at a challenging time,” said Mary Moran, President and Chief Executive Officer of Calgary Economic Development.
“More importantly, this pipeline allows us to deliver our more responsible and cleaner energy solutions to the world and support global climate action”