Alberta is seeking $1.3 billion in compensation from the U.S. government in the wake of President Joe Biden’s cancellation of the Keystone XL pipeline’s permit.
The provincial government says it has filed a notice of intent to launch a claim under legacy rules tied to the old North American Free Trade Agreement, or NAFTA.
The Keystone XL pipeline would have provided a number of economic benefits on both sides of the border.
As we have seen with recent global events, energy security for North America is critical to our shared economic growth and prosperity. https://t.co/uO0Pe2lp5P
— Hon. Sonya Savage, KC (@sonyasavage) February 9, 2022
The proposed Keystone XL pipeline had been the subject of a decade-plus battle that pitted the energy industry against environmentalists.
Biden revoked the permit for Keystone XL shortly after his inauguration last year.
“The Keystone XL pipeline would have provided a number of economic benefits on both sides of the border,” said Energy Minister Sonya Savage in a statement. “As we have seen with recent global events, energy security for North America is critical to our shared economic growth and prosperity. It remains Alberta’s position that our resource sector can and should be a responsible and reliable energy source for North American markets in the years to come.”
Calgary-based TC Energy, the company behind the proposed pipeline, filed a similar claim in July seeking US$15 billion, after formally cancelling the project and taking a $2.2-billion writedown.
Related article:
TC Energy seeks to recoup costs from U.S. for cancelled Keystone XL pipeline project
The Alberta government had invested in the project and was left on the hook for $1.3 billion when it was cancelled.
“We remain disappointed about the events and circumstances that led to the cancellation of this project. Alberta’s government will continue to fiercely advocate for our energy sector and the workers whose livelihoods depend on it.”
