The final cost to Albertans for the Keystone XL pipeline will be about $1.3 billion as the provincial government and TC Energy announced the official termination of the project.
“We invested in Keystone XL because of the long-term economic benefits it would have provided Albertans and Canadians,” said Energy Minister Sonya Savage in a news release.
The Alberta government agreed last year to invest about $1.5 billion as equity in the project, plus billions more in loan guarantees in order to get the pipeline moving.
As a result, the Canadian leg of the project had been under construction for several months with around 1,000 workers in southeast Alberta.
If completed, the 1,897-kilometre pipeline, first announced in 2005, would have carried 830,000 barrels of crude a day from the oilsands, from Hardisty, Alta., to Nebraska. It would then connect with the original Keystone that runs to U.S. Gulf Coast refineries.
That investment vaporized when the Biden administration in the U.S. cancelled the permit for the project on its first day in office.
TC Energy and the province said they would look at their options in the wake of the cancellation, but TC Energy said the project was officially dead as of Wednesday.
The company will continue to coordinate with regulators, stakeholders and Indigenous groups to meet its environmental and regulatory commitments and ensure a safe termination of and exit from the project,” TC Energy said in a news release.
Previously, Alberta Premier Jason Kenney said the government would work with TC Energy to “to use all legal avenues available to protect its interest in the project.”