President Joe Biden revokes permit of $8bn Keystone XL pipeline

US President Joe Biden has formally revoked the existing Presidential Permit for the TC Energy’s (formerly TransCanada) $8bn Keystone XL pipeline saying that the project ‘disserves the US national interest’.

Currently under construction, the 1,897km cross-border pipeline is intended to supply crude from the Alberta oil sands in Canada to the US Gulf Coast refineries.

It will have the capacity to deliver 830,000 barrels of heavy crude oil a day, and create job opportunities for 9,000 workers.

Former US President Donald Trump issued permits to construct, connect, operate, and maintain pipeline facilities at the international border of the US and Canada in March 2019.

The permit, however, was subject to express conditions and potential revocation in the sole discretion of the President.

TC Energy said that the latest move overturns a decade-long comprehensive regulatory process and will result in the direct layoff of thousands of union workers.

Commenting on the decision made on the Keystone XL project, Canadian Prime Minister Justin Trudeau said: “While we welcome the President’s commitment to fight climate change, we are disappointed but acknowledge the President’s decision to fulfill his election campaign promise on Keystone XL.”

Following the revocation of the permit, TC Energy will suspend construction, review the decision and assess its implications.

The company added that it will consider its options, as well as plans to modify its previously announced financing plans.

Separately, the US Federal Energy Regulatory Commission (FERC) upheld Oregon’s denial of a key permit for the Pembina Pipeline’s proposed $10bn Jordan Cove LNG Project.

In May 2019, the Oregon Department of Environmental Quality refused to issue a Clean Water Act approval to the LNG export terminal and the associated 368km long Pacific Connector pipeline, citing its not non-compliance with the water quality standards of Oregon.

A petition was filed later by the Jordan Cove LNG Project with the FERC requesting it to override the state’s decision, claiming that the Oregon Department of Environmental Quality waived its authority to issue certification to the project under the Clean Water Act.

As a result, a decision was made unanimously by the FERC that Oregon did not waive its authority.