British Columbia Sun

TC Energy asking $15B from the U.S. for charges of cutting the pipeline

Key takeaways: 

  • The firm is asking for payment for charges but has no ideas to refresh the project.
  • Even if it gains payment, TC Energy announces it has no intentions to renew the pipeline itself.

TC Energy states the firm has no plan to reactivate the pipeline: 

TC Energy Inc. has registered a legal demand for an agreement under NAFTA laws, asking $15 billion in payment from the U.S. government for the money it paid on attempting to improve the offset Keystone XL pipeline.

The firm stated in a statement late Monday that it has formally registered paperwork under a part of NAFTA laws that enables firms to ask for payment for failed investment. The case is moving forward under NAFTA laws and not fresh ones made under its replacement, the Canada-U.S.-Mexico Agreement (CUSMA), because it is a legacy case, and NAFTA was the business rule on the books when it began, stated Erin LeBlanc, a teacher at the Smith School of Business in Kingston, Ont.

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“It’s the largest claim for a Canadian organization against the U.S. government at $15 billion,” she stated, indicating the figure first proclaimed by Bloomberg of how much in losses the firm is asking. Source – cbc.ca

U.S. President Joe Biden symbolically hit the pipeline on his initial day in the position earlier this year, the conclusion of a multi-year saga under three U.S. presidents to establish a pipeline to convey 900,000 barrels a day of crude oil from Alberta to factories on the U.S. Gulf Coast.

The pipeline was offered under the Obama administration, who eventually refused the use on environmental areas. President Trump then activated the project, before Biden crushed it again.

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