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TC Energy going ahead with Keystone XL with help from Alberta government

Last Updated Mar 31, 2020 at 10:20 am MST

Pipes intended for the Keystone XL pipeline sit in storage in Little Rock, Ark. May 24, 2012. TC Energy says it plans to begin construction in April to connect the Keystone XL Pipeline from the United States into Canada. THE CANADIAN PRESS/AP, Danny Johnston

CALGARY — TC Energy Corp. says it is going ahead with construction of its US$8-billion Keystone XL Pipeline project.

The 1,947-kilometre project will be able to carry 830,000 barrels per day of crude oil from Hardisty, Alta., to Steele City, Neb. where it will connect with TC Energy’s existing facilities.

The Alberta government is also giving help to the project, announcing a $1.5 billion investment to streamline construction of the project.

That’s being followed by a $6 billion loan guarantee in 2021.

“We cannot wait for the end of the pandemic and the global recession to act,” said Premier Jason Kenney. “There are steps we must make now to build our future focussed on jobs, the economy, and pipelines. Today we are moving forward with a project that is essential to our future prosperity.”

The company formerly known as TransCanada says with pre-construction activities underway, the pipeline is expected to enter service in 2023.

Once the project is complete and in service, TC Energy expects to acquire the Alberta government’s equity investment under agreed terms and conditions and refinance the US$4.2-billion credit facility in the debt capital markets.

The Canadian Press