Government reaches exit agreement on Keystone XL project with TC Energy

The Alberta government is terminating its involvement in the Keystone XL project after the presidential permit approving the pipeline was revoked in January.

The government and TC Energy have reached an agreement for an orderly exit from the KXL project and partnership. The two parties will continue to explore all options to recoup the government’s investment in the project.

“We remain disappointed and frustrated with the circumstances surrounding the Keystone XL project, including the cancellation of the presidential permit for the pipeline’s border crossing,” Jason Kenney, Premier said. “Having said this, Alberta will continue to play an important role in a reliable, affordable North American energy system. We will work with our U.S. partners to ensure that we are able to meet U.S. energy demands through the responsible development and transportation of our resources.”

Alberta’s government invested in Keystone XL because the project aligned with the province’s long-term economic interests. The pipeline’s completion would have led to higher prices as well as increased volumes of oil sands crude production, generating at least $30 billion in increased royalties over 20 years for Alberta taxpayers.