Question Period Note: Keystone XL

The Canadian portion of the Keystone XL pipeline was approved in March 2010, subject to 22 conditions. Construction on the 1.2 mile cross-border section was completed in spring 2020.
On July 3, 2020, construction officially began in Canada, with 269 kilometers of pipeline to be constructed and commissioned in Alberta over the next three years, supported by loan guarantees and a direct investment by the Government of Alberta.
In March 2019, President Trump issued a Presidential Order authorizing the KXL to cross the Canada-U.S. border. In July 2019, the Indigenous Environmental Network and the North Coast Rivers Alliance brought forward two motions seeking a preliminary injunction and temporary restraining order to cease construction of the pipeline on the U.S. side of the border. On October 16, 2020, a U.S. District Court judge in Montana denied the motions. Other lawsuits related to the Endangered Species Act, the Bureau of Land Management federal permits, and other indigenous and environmental challenges are still pending. Construction on the Canadian side is ongoing and not impacted.
President-elect Biden has previously vowed to rescind the Presidential permit for the project.

• Our government believes in a competitive and sustainable natural resources sector and that good projects must go ahead with the full confidence of Canadians.
• Our government has always been a strong supporter of Keystone XL, which will increase our market access – safely, responsibly, and sustainably.
• This project has received all major approvals in both Canada and the United States.
• The project will bring significant economic benefits and create thousands of jobs in several states, and strengthen long-term energy security in North America; it will contribute to the strongest energy relationship in the world.
• The construction of this pipeline highlights the close energy ties between Canada and the U.S., and underscores Canada’s role in ensuring U.S. energy security by providing close to 20 percent of U.S. petroleum needs.
• We know that there can be a balance between economic prosperity and the environment in the transition to a low-carbon future.
• We look forward to construction moving forward.
If pressed on the statement by President-elect Biden that he would cancel KXL’s permit:
• As a key U.S. ally that respects market principles, Canada is essential to the energy security of the United States, providing over half of their crude oil imports.
• Projects like Keystone XL are necessary to ensure North American energy security during a highly uncertain time for global energy markets.
• Canada is one of the only major suppliers of oil to the United States that has a price on carbon and a goal to achieve net-zero emissions by 2050. Energy trade with Canada helps both countries transition to a low carbon economy.
If pressed on the ruling against the permit issued by Army Corps of Engineers:
• It would be inappropriate to comment while litigation is ongoing.
• This is one of several legal issues that TC Energy is addressing, but their announcement of a Final Investment Decision, and construction in Alberta and Montana, are strong signals that it believes it can succeed in satisfying all regulatory requirements.
If pressed on the court case against the Presidential permit:
• We respect the process that is taking place in the United States and have no further comment pending the judge’s ruling.
If pressed on construction and COVID-19:
• The company has stated that it will take guidance from all levels of government and health authorities to determine the most proactive and responsible actions to ensure the safety of its workers and communities during the COVID-19 situation.
• Construction will only advance after every consideration for the health and safety of its workers and those in the surrounding communities have been taken into account.

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