Alberta backing offsets higher risk after Biden vows to kill Keystone XL: analyst

Alberta backing offsets higher risk after Biden vows to kill Keystone XL: analyst

CALGARY — A financial analyst says Alberta government backing means TC Energy Corp. can be more comfortable continuing construction of the Keystone XL pipeline this summer despite Joe Biden’s vow to kill it if he is elected president in November.

Jennifer Rowland of Edward Jones says it’s not surprising that the campaign for the leading U.S. Democratic Party candidate said Monday that he would cancel the presidential permit for the project issued by President Donald Trump.

She says the declaration, however, represents a significant risk for the US$8-billion project and would likely result in the Calgary-based company re-examining how prudent it is to continue construction.

The project was given a favourable investment decision on March 31 following Alberta’s pledge to take a C$1.5-billion equity stake and provide a loan guarantee to ensure work started immediately.

Three weeks ago, TC Energy said it would adjust its plans but forge ahead with construction despite the impact of a U.S. court ruling that invalidated a nationwide permit allowing pipelines to cross waterways.

Spokeswoman Sonja Franklin of oilsands producer Cenovus Energy Inc. says the company won’t speculate on the outcome of the U.S. election and remains a firm supporter of the pipeline.

Rowland says it would be “naive” to think that Biden wouldn’t kill the pipeline because it has been partly built.

“I think it becomes potentially a little bit easier for TC to go ahead and spend knowing that the initial money is really being backed by the government,” she said in an interview.

“That does take some pressure off so that they can continue. They can gamble because it’s not their money.”

This report by The Canadian Press was first published May 19, 2020.

Companies in this story: (TSX:TRP, TSX:CVE)

The Canadian Press

Keystone XL

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

Just Posted

Survey: 43% of Red Deer area businesses do not plan to rehire once COVID crisis ends

Red Deer and District Chamber of commerce surveys local businesses

Federal aid for care home systems needed ahead of second wave, advocates say

OTTAWA — The federal government must do more to help provinces prepare… Continue reading

Man accused in 2019 Grandview homicide going to trial

Quentin Strawberry charged with second-degree murder

Woman reported missing in Red Deer

Red Deer RCMP seek public’s assistance

Solidarity together: Central Albertans protest in Red Deer against racism

There’s no such thing as a little bit of racism. Even one… Continue reading

Kenney’s party doesn’t need taxpayer handouts

The United Conservative Party said it would stick up for taxpayers, but… Continue reading

There’s no point arguing climate change is just a hoax

Re: “Global warming critics find themselves under attack,” Letter, May 26. Like… Continue reading

Michael Dawe: Hobo Jungle was once an oasis for those who couldn’t find work

There is a lot of well-founded concern about the enormous worldwide impact… Continue reading

Former Canadian university defenceman Kodie Curran signs with Anaheim Ducks

CALGARY — Kodie Curran took an unorthodox route to an NHL contract.… Continue reading

Creator fires ‘Law & Order’ spin-off writer for online posts

LOS ANGELES — A TV writer who has worked on “S.W.A.T.” and… Continue reading

Nunavut RCMP order probe after video shows suspect hit by police vehicle door

Nunavut RCMP order probe after video shows suspect hit by police vehicle door

Joint federal-provincial inquiry into N.S. mass shooting a good option: top expert

Joint federal-provincial inquiry into N.S. mass shooting a good option: top expert

As U.S. boils over, calls for Canadian justice ring out in House of Commons

As U.S. boils over, calls for Canadian justice ring out in House of Commons

Most Read