KEYSTONE

CALGARY — A final investment decision on Tuesday clearing the way for construction of the long-delayed Keystone XL Pipeline was greeted with relief by an Alberta oilpatch where production has outgrown pipeline capacity.

The decision by Calgary-based TC Energy Corp. to go ahead with the US$8-billion project was widely anticipated after it cleared all major U.S. regulatory impediments earlier this year and had begun site preparation work in Montana, South Dakota and Nebraska.

In a surprising development, however, the Alberta provincial government has agreed to invest about US$1.1 billion as equity in the project, thus substantially covering planned construction costs through the end of 2020.

The remaining US$6.9 billion is expected to be funded through a combination of a US$4.2-billion project level credit facility to be fully guaranteed by the Alberta government and a US$2.7-billion investment by TC Energy.

"We cannot wait for the end of the pandemic and the global recession to act," said Premier Jason Kenney in a statement on Tuesday.

"Today we are moving forward with a project that is essential to our future prosperity. This investment in Keystone XL is a bold move to re-take control of our province's economic destiny and put it firmly back in the hands of the owners of our natural resources, the people of Alberta."

He said Alberta will be able to sell its shares for a profit after the pipeline is built and it will generate a net return of over $30 billion through royalties and higher prices for Alberta oil in the next 20 years.

More at:

https://www.msn.com/en-ca/money/topstories/tc-energy-says-it-is-going-ahead-with-usdollar8-billion-keystone-xl-project/ar-BB11XEex?li=AAggFp5