Alberta backing offsets higher risk after Biden vows to kill Keystone XL: analyst

Alberta backing offsets higher risk after Biden vows to kill Keystone XL: analyst

CALGARY — A financial analyst says Alberta government backing means TC Energy Corp. can be more comfortable continuing construction of the Keystone XL pipeline this summer despite Joe Biden’s vow to kill it if he is elected president in November.

Jennifer Rowland of Edward Jones says it’s not surprising that the campaign for the leading U.S. Democratic Party candidate said Monday that he would cancel the presidential permit for the project issued by President Donald Trump.

She says the declaration, however, represents a significant risk for the US$8-billion project and would likely result in the Calgary-based company re-examining how prudent it is to continue construction.

The project was given a favourable investment decision on March 31 following Alberta’s pledge to take a C$1.5-billion equity stake and provide a loan guarantee to ensure work started immediately.

Three weeks ago, TC Energy said it would adjust its plans but forge ahead with construction despite the impact of a U.S. court ruling that invalidated a nationwide permit allowing pipelines to cross waterways.

Spokeswoman Sonja Franklin of oilsands producer Cenovus Energy Inc. says the company won’t speculate on the outcome of the U.S. election and remains a firm supporter of the pipeline.

Rowland says it would be “naive” to think that Biden wouldn’t kill the pipeline because it has been partly built.

“I think it becomes potentially a little bit easier for TC to go ahead and spend knowing that the initial money is really being backed by the government,” she said in an interview.

“That does take some pressure off so that they can continue. They can gamble because it’s not their money.”

This report by The Canadian Press was first published May 19, 2020.

Companies in this story: (TSX:TRP, TSX:CVE)

The Canadian Press

Keystone XL

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

40 new COVID-19 cases confirmed in Alberta

Province’s central zone still has no active cases

Parking lot picnic at Huckleberry’s Café in Wetaskiwin

Community members including Mayor Gandam enjoy a Huckleberry parking lot picnic.

Alberta reports just seven new COVID-19 cases

‘Today’s numbers mark an occasion to be celebrated’

Local non-profit is providing dresses to grads in need

The Prom Project based out of Wetaskiwin aims to provide affordable gowns for grads and brides.

UPDATE: Large brush fire at Mulhurst Bay dump

Mulhurst & District Fire Department is on scene.

PODCAST: Black Lives Matter in central Alberta

Community organizers come on the show to discuss central Albertan anti-racist movement

Facing changes together: Your community, your journalists

The COVID-19 pandemic has changed the world in ways that would have… Continue reading

Red Deerians protest against racism on Saturday

This was the third protest in the city this week

‘It’s brewing’: Inmates, guards worry about violence after COVID-19 lockdown

‘Thirteen weeks in a cage the size of your (bathroom) has been pretty devastating’

Feds sign $105-million deal with Bombardier for two new Challenger jets

Department of National Defence announced the deal with Bombardier on Saturday

‘Alarmed:’ Health critic calls for more data on COVID-19 in trucking industry

Public Health Agency of Canada does not collect information on long-haul truckers

Montreal man believes rough arrest caught on video was racially motivated

Montreal man believes rough arrest caught on video was racially motivated

N.B. police shooting of Indigenous woman leads to questions on ‘wellness checks’

N.B. police shooting of Indigenous woman leads to questions on ‘wellness checks’

Most Read