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Be the first with the news that moves the market- TC Energy Corporation (TSX:TRP) is moving ahead with its long-delayed Keystone XL Pipeline
- The project will link the existing Keystone Pipeline directly between Alberta and the US state of Nebraska
- Constructing the pipeline is likely to cost over C$11 billion, with $1.6 billion put forward by the Alberta government
- The project took over ten years to gain approval, and was previously rejected by President Barack Obama, citing environmental concerns
- At the previous market close, TC Energy (TRP) was trading for $58.27 per share, with a $54.68 billion market cap
TC Energy (TSX:TRP) is moving ahead with its long-delayed Keystone XL Pipeline, after a C$1.6 billion investment from Alberta’s Government.
The Alberta Government’s investment will fund the construction of the pipeline through 2020. TC Energy and a government-based loan facility will put forward a further $9.82 billion, to finish the project over the following two years.
TC Energy expects to have the pipeline up and running in 2023.
The proposed pipeline would bridge two areas of the existing Keystone Pipeline, stretching from Alberta to the US state, Nebraska. Oil will flow from Canada’s oil fields to TC Energy’s Nebraska-based refineries, where it will connect to the Gulf Coast.
The project has taken over a decade to get off the ground, and faced heavy protesting by many environmental groups. In 2012, US President Barack Obama’s administration rejection the pipeline’s initial proposal.
TC Energy’s President and CEO, Russ Girling, was grateful to various private and political groups, which helped the project finally proceed.
“This important energy infrastructure project will put thousands of people to work, generate substantial economic benefits, and strengthen continental energy security.
“We thank President Trump, Alberta Premier Jason Kenney, and many government officials across North America, for their support and advocacy. Without them, individually and collectively, this project could not have advanced,” he said.
Estimates suggest that the Keystone XL Pipeline will be 1,947 kilometres long, and will transport over 830,000 oil barrels daily.
At the previous market close, TC Energy (TRP) was trading for $58.27 per share, with a $54.68 billion market cap.
