Reports related to this article:
Project(s): View 1 related project in PECWeb
Plant(s): View 1 related plant in PECWeb
Released April 01, 2020 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Following the announcement of a US$1.1 billion equity investment by the government of Alberta, TC Energy Corporation (NYSE:TRP) (Calgary, Alberta) said it will proceed with construction of the Keystone XL crude oil pipeline, a project that has been in limbo for more than a decade. The 830,000-barrel-per-day (BBL/d) pipeline will carry crude oil from Alberta to Steele City, Nebraska, where it will join an existing pipeline to the Texas Gulf Coast.
The pipeline was first proposed in 2008, but faced years of regulatory delays and protests. In early 2012, then Democratic President Barack Obama rejected construction of the pipeline, saying a Republican-mandated deadline on a decision had prevented the State Department from making a full evaluation of the pipeline. Another application was submitted, but in 2015, Obama rejected construction of the pipeline again, this time for environmental reasons. However, in March 2017, President Donald Trump gave the pipeline a key permit to proceed.
Preconstruction activities have commenced on Keystone XL, and in a press release, the company said that the investment by Alberta would substantially cover planned construction activity through the end of this year, with the remaining investment of approximately $6.9 billion being made primarily in 2021 and 2022. The pipeline is expected to be in service in 2023. Click here for a list of projects related to Keystone XL.
Exactly how construction will proceed in the face of the COVID-19 pandemic remains uncertain. Chief Executive Officer Russ Girling said, "During construction, we will continue to take guidance from all levels of government and health authorities to determine the most proactive and responsible actions in order to ensure the safety of our crews and community members during the current COVID-19 situation. Construction will advance only after every consideration for the health and safety of our people, their families and of those in the surrounding communities has been taken into account."
Jesus Davis, Industrial Info's vice president of Oil & Gas Industry research, said, "Although oil demand and production are both down at the moment, TC Energy is keeping a medium-term view of the project, which isn't expected to be in service until 2023. By then, global demand for oil should have picked back up. The project really needs to happen, as Alberta is already operating under production curtailments because of a lack of takeaway capacity. It's not about expanding existing assets and increasing production in the region, it's just about getting up to normal operating capacity in the future."
While Keystone XL is TC Energy's biggest undertaking, Industrial Info is tracking more than $13.5 billion in total TC Energy projects. Outside of the U.S., one of the company's largest projects is the $900 million Coastal GasLink Pipeline, a 416-mile grassroot natural gas pipeline in northern British Columbia. Construction on the project began in early 2019; however, its near-term fate remains uncertain as it is intended to deliver gas to Shell (NYSE:RDS-A)-led LNG Canada's liquefied natural gas (LNG) production and export facility in Kitimat, British Columbia. In March, LNG Canada announced that it was reducing the number of workers at the site of the export plant and that work had slowed in an effort to curb COVID-19. For more information, see March 19, 2020, market brief - LNG Canada Slows Kitimat Site Work Due to Coronavirus. The pipeline was originally slated for completion in mid-2021. For more information, see Industrial Info's project report.
Other TC Energy projects under construction include the North Montney Mainline natural gas pipeline extension in British Columbia. The 128-mile, 42-inch-diameter pipeline will have an initial transport capacity of 150 million cubic feet per day. Construction on the project began in the summer of 2018 and is expected to be completed later this year. Click here for a list of pipeline segments and associated compressor stations.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
The pipeline was first proposed in 2008, but faced years of regulatory delays and protests. In early 2012, then Democratic President Barack Obama rejected construction of the pipeline, saying a Republican-mandated deadline on a decision had prevented the State Department from making a full evaluation of the pipeline. Another application was submitted, but in 2015, Obama rejected construction of the pipeline again, this time for environmental reasons. However, in March 2017, President Donald Trump gave the pipeline a key permit to proceed.
Preconstruction activities have commenced on Keystone XL, and in a press release, the company said that the investment by Alberta would substantially cover planned construction activity through the end of this year, with the remaining investment of approximately $6.9 billion being made primarily in 2021 and 2022. The pipeline is expected to be in service in 2023. Click here for a list of projects related to Keystone XL.
Exactly how construction will proceed in the face of the COVID-19 pandemic remains uncertain. Chief Executive Officer Russ Girling said, "During construction, we will continue to take guidance from all levels of government and health authorities to determine the most proactive and responsible actions in order to ensure the safety of our crews and community members during the current COVID-19 situation. Construction will advance only after every consideration for the health and safety of our people, their families and of those in the surrounding communities has been taken into account."
Jesus Davis, Industrial Info's vice president of Oil & Gas Industry research, said, "Although oil demand and production are both down at the moment, TC Energy is keeping a medium-term view of the project, which isn't expected to be in service until 2023. By then, global demand for oil should have picked back up. The project really needs to happen, as Alberta is already operating under production curtailments because of a lack of takeaway capacity. It's not about expanding existing assets and increasing production in the region, it's just about getting up to normal operating capacity in the future."
While Keystone XL is TC Energy's biggest undertaking, Industrial Info is tracking more than $13.5 billion in total TC Energy projects. Outside of the U.S., one of the company's largest projects is the $900 million Coastal GasLink Pipeline, a 416-mile grassroot natural gas pipeline in northern British Columbia. Construction on the project began in early 2019; however, its near-term fate remains uncertain as it is intended to deliver gas to Shell (NYSE:RDS-A)-led LNG Canada's liquefied natural gas (LNG) production and export facility in Kitimat, British Columbia. In March, LNG Canada announced that it was reducing the number of workers at the site of the export plant and that work had slowed in an effort to curb COVID-19. For more information, see March 19, 2020, market brief - LNG Canada Slows Kitimat Site Work Due to Coronavirus. The pipeline was originally slated for completion in mid-2021. For more information, see Industrial Info's project report.
Other TC Energy projects under construction include the North Montney Mainline natural gas pipeline extension in British Columbia. The 128-mile, 42-inch-diameter pipeline will have an initial transport capacity of 150 million cubic feet per day. Construction on the project began in the summer of 2018 and is expected to be completed later this year. Click here for a list of pipeline segments and associated compressor stations.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
