AGI – Oil friction between the US and Canada could weigh on the G7 in Cornwall. In fact, the Canadian company Tc Energy has announced that it has abandoned the Keystone Xl project, the oil pipeline that would connect the Canadian fields with the US refinery network.
Last March United States President Joe Biden had issued an executive order to stop the controversial project but 21 states, led by Texas and Montana, had appealed arguing that the matter was theirs and not the White House’s. Now the project has been permanently buried.
“TC Energy confirmed today, after a comprehensive review of its options and in consultation with its partner, the Alberta government, that it has completed the Keystone XL pipeline project,” the Canadian operator said in a statement. The Canadian group had announced the suspension of the work just hours before the signing of the decree by Mr. Biden, on January 20, as soon as he took office.
The group based in Calgary, western Canada, expressed its disappointment, subsequently announcing “the firing of thousands of unionized workers”.For its part, the Alberta government also said it had abandoned the project and said it “explored all options” to recoup its investment. The province estimates that the abandonment of the project is expected to cost 1.3 billion Canadian dollars (881 million euros).
“We remain disappointed and frustrated by the circumstances surrounding Keystone XL, including the cancellation of the presidential permit that allows the pipeline to cross the border,” said Alberta Premier Jason Kenney. The province concentrates most of the country’s oil reserves, Canada’s main export product.
The project, supported by Ottawa but criticized by environmentalists, was launched in 2008. Canceled for the first time by Barack Obama because he was deemed too polluting, it had been put back on track by Donald Trump for economic reasons. The lifting of his predecessor’s decree was one of Joe Biden’s campaign promises, as part of his plan to combat climate change. It had also sparked the disappointment of Canadian Prime Minister Justin Trudeau, who had pledged to complete Keystone XL and other pipelines to bring Canadian oil to other markets and get a better price.
According to experts, the oil-rich provinces of Alberta and Saskatchewan (center), already hit by falling oil prices, should pay a high price for this abandonment. of the project which was to allow the transport of over 800,000 barrels of oil per day starting from 2023 between Alberta and the American refineries in the Gulf of Mexico.