Alberta Premier Jason Kenney said the Canadian government should consider sanctions on the U.S. if they refuse to reconsider the decision to cancel the Keystone XL Pipeline. (THE CANADIAN PRESS/Sean Kilpatrick

Keystone XL officially cancelled, Kenney vows to fight on

U.S. President Joe Biden cancelled the presidential permit for the pipeline on first day of office

Alberta Premier Jason Kenney pulled no punches in his criticism of the U.S government’s decision on the Keystone XL Pipeline.

U.S. President Joe Biden, on his first day in office Wednesday signed a number of executive orders, including one to cancel the Keystone XL permit.

“We are deeply disturbed that one of President Biden’s first actions in office has been to rescind the president permit for the Keystone XL pipeline,” Kenney said in a press conference Wednesday.

“This is a gut punch for the Canadian and Alberta economies. Sadly it is an insult directed at the United States’ most important ally and trading partner on day 1 of a new administration.”

Alberta has invested $1.5 billion directly to TC Energy Corp. for the Keystone project along with contractual commitments of $6 billion more in loan guarantees.

Kenney has said if the project is scrapped, Alberta taxpayers are on the hook for about $1 billion.

The 1,947-kilometre pipeline was designed to carry 830,000 barrels a day of crude oil from Hardisty, Alta., to Steele City, Neb. From there it would connect with the company’s existing facilities to reach the U.S. Gulf Coast — one of the world’s biggest oil refining hubs.

Kenney said over 2,000 people have lost their job as a result of the decision. He added that he believes Biden retroactively vetoed approval for a pipeline that already existed.

Some 200 kilometres of pipe has already been installed for the expansion, including across the Canada-U.S. border, and construction has begun on pump stations in Alberta and several U.S. states.

“Directly attacking by far the largest part of the Canada- U.S. trade relationship, which is our energy industry and export,” Kenney said.

The premier added that he is disappointed that the Biden administration didn’t give Alberta or Canada the opportunity to present their case for moving forward with Keystone.

“Now a decision has been made without even given us a chance to communicate formally with the new administration, that’s not good faith,” he said.

In a statement late Wednesday, Prime Minister Justin Trudeau said he spoke with then-president-elect Biden about the project in November. Trudeau expressed disappointment that the project was cancelled.

“Workers in Alberta, Saskatchewan, and across Canada will always have our support. Canada is the single-largest supplier of energy to the United States, contributing to U.S. energy security and economic competitiveness, and supporting thousands of jobs on both sides of the border,” he said.

Kenney noted if the U.S. refuses to come to the table to discuss the cancellation of the Keystone project further, the Canadian government should consider sanctions in response.

“To defend our country’s vital economic interest,” he said, adding not doing so would create a dangerous precedent.

Kenney also noted in his press conference that he advised the Prime Minister that the Keystone project could generate an estimated $30 billion in additional provincial revenue over the next 20 years.

Read also:

TC Energy halts spending on Keystone XL, says it’s ‘disappointed’ with Biden move

TC Energy decarbonization response to Keystone setback unlikely to sway ESG investors

TC Energy announced a plan Sunday for the Keystone XL project to achieve net-zero emissions by spurring an investment of over US$1.7 billion in communities along the Keystone XL footprint to create about 1.6 gigawatts of renewable electric capacity.

The Calgary-based company has also struck a deal with four labour unions to build the pipeline and has an agreement in place with five Indigenous tribes to take a roughly $785 million ownership stake.

-With files from The Canadian Press



Send your news tips

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alberta Premier Jason Kenney said Thursday that the province may consider a regional approach to loosening COVID-19 restrictions if numbers continue to decline. (photo by Chris Schwarz/Government of Alberta)
Province further easing health restrictions

Numbers of people hospitalized and in intensive care has dropped dramatically, says premier

Dr. Stanley Read
Hometown Bashaw doctor recognized with alumni award for AIDS work

Dr. Stanley Read, born and raised in Bashaw, is considered a global health leader

File photo
Alberta’s central zone has 670 active cases

301 new cases identified Sunday

RCMP. (Phil McLachlan - Black Press Media)
UPDATED: Located

Kenneth Gilbert was last seen in Camrose County on Feb. 25

Alberta has 1,910 active cases of COVID-19 as of Wednesday. Red Deer is reporting five active cases, with 108 recovered. (File photo)
Red Deer reports 25th COVID-19 death

415 new cases identified provincially Saturday

Bookings for COVID-19 vaccines for people age 75 or older start Wednesday. (File photo by THE CANADIAN PRESS)
Updated: Delays for seniors booking for vaccine appointments

By 9:20 a.m. Wednesday, 4,500 seniors had booked their appointments

(File photo/Lauren Collins Vana)
UPDATED: Ponoka cat owners have until July 1, 2021 to purchase licenses

Town council passed new Animal Control Bylaw Feb. 23

A ” Justice for Jeff” T-shirt. (Photo submitted)
Rally to be held outside Red Deer courthouse for slain Ponoka man

Sentencing for accused charged with manslaughter with a firearm set for March 4

THE CANADIAN PRESS/Jeff McIntosh
Time to check the mail: Every household to receive a Canada Post postcard this spring

Postcard can be mailed for free to any address in Canada

A cross-country skier glides along the banks of the Ottawa River in Ottawa on Thursday, Feb. 25, 2021. Canadians across the country can look forward to a mild spring peppered with the odd winter flashback throughout the first part of the season, according to predictions from one prominent national forecaster. THE CANADIAN PRESS/Sean Kilpatrick
Mild spring with some wintry blasts predicted for most of Canada: Weather Network

Weather Network is forecasting a slower than average start to spring in British Columbia

AstraZeneca’s vaccines are ready for use at the vaccination center in Apolda, Germany, Sunday, Feb.28, 2021. (Michael Reichel/dpa via AP)
Feds hoping for AstraZeneca shots this week as Pfizer-BioNTech prepare next delivery

The first of those doses could start to arrive in Canada as early as Wednesday

People line up outside a vaccine clinic as seniors wait to get the COVID-19 vaccine in Edmonton Alta, on Friday February 26, 2021. THE CANADIAN PRESS/Jason Franson
Alberta Health Services head sorry for glitches in vaccine booking system for seniors

AHS president said technical issues have been fixed and a virtual waiting room is in place

Vandalism is shown on Alberta NDP MLA Janis Irwin’s constituency office in Edmonton in this handout photo on Saturday, February 27, 2021. Alberta Premier Jason Kenney quickly condemned vandalism at an Opposition legislature member Janis Irwin’s Edmonton office after the MLA posted pictures showing her front window spray-painted with the words “Antifa Liar.” THE CANADIAN PRESS/HO, Janis Irwin *MANDATORY CREDIT*
Alberta Premier slams vandalism after slur painted on MLA’s office window

Edmonton MLA Janis Irwin posted pictures showing the front window spray-painted with the words ‘Antifa Liar’

Most Read