The government announced on March 31 that construction on the Keystone XL (KXL) Pipeline will begin immediately.
“We’ve been hit hard with the worst public health crisis in over a century, and we’re doing everything within our power to limit the spread of the coronavirus and save lives,” said the Premier of Alberta Jason Kenney.
“At the same time, our economy is undergoing the largest contraction since the great depression.
“I know that all of these things put together can seem overwhelming, but please remember that we Albertans are resilient people, and we have overcome trying times in our past to go on a build one of the freest, most prosperous and generous places on earth,” he said.
With the announcement, Alberta will make a $1.5 billion equity investment in the KXL pipeline this year, followed by a $6 billion loan guarantee next year.
“Today, we are moving forward with a project that is essential to our future prosperity,” Kenney added. “I am pleased to announce that the government of Alberta has finalized an agreement with Calgary based TC Energy to invest in the completion of the KXL Pipeline.”
The kickstart of immediate construction on the pipeline will increase the delivery of oil sands crude to the United States by at least 830,000 barrels a day by the summer of 2023.
The investment will immediately create approximately seven thousand jobs in Alberta this year, and 13,500 jobs across Canada.
“It will also help our economy recover more quickly from the brutal impact of the COVID-19 pandemic, and recession,” Kenney said.
“The government of Alberta is confident that this is a wise and prudent investment. After construction is complete, we will be able to sell our shares at profit,” he said.
The KXL pipeline project will have a net return of over $30 billion to the Alberta taxpayer through royalties and higher prices for Alberta oil for the next two decades.
Following the pandemic, the government of Alberta will launch a bold economic recovery plan, that will accelerate the diversification of the provincial economy.
“It will also ensure a future for our largest industry because when we get through the crisis and the global economy moves back to growth, it will be more obvious than ever that the world needs a reliable, democratic, major source of energy,” Kenney said.
“That will only happen if our energy has access to global markets. In other words, it will only happen if we get pipelines built,” he said.
“We can’t wait for the end of the pandemic and global recession in order to act,” he added. “There are steps that we must take now to build our future, steps that are focused on jobs, the economy, and on pipelines.”
For additional information on the construction of the KXL pipeline please visit https://www.alberta.ca/investing-in-keystone-xl-pipeline.aspx.
