by Morinville News Staff
The Government of Alberta announced a $1.5 billion government investment in the Keystone XL (KXL) pipeline Tuesday, a move the province says will accelerate construction to have the line operational by 2023.
The agreement, which has taken six months of negotiations, between the Government of Alberta and Calgary-based TC Energy Corporation begins Apr. 1 and will include $1.5 billion in equity investment in 2020, followed by a $6 billion loan guarantee in the following year.
The province anticipates the project will create more than 1,400 direct and 5,400 indirect jobs in Alberta during construction, generating an estimated $30 billion in tax and royalty revenues.
“We cannot wait for the end of the pandemic and the global recession to act. There are steps we must make now to build our future focussed on jobs, the economy, and pipelines,” Premier Jason Kenney said in a media release 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. The Government of Alberta is confident that this is a wise investment. After construction is complete, we will be able to sell our shares at profit. In addition, the project will have a net return of over $30 billion to the Alberta taxpayer through royalties and higher prices for Alberta oil in the next 20 years.”
The pipeline, when operational, will carry approximately 830,000 barrels per day of Alberta crude, which the province says will “significantly increasing the province’s takeaway capacity and [help] to protect the value of its energy resources.”
Construction is set to begin immediately in Alberta, at the Canada-US border, in Montana, South Dakota and Nebraska.