Receive our newsletter – data, insights and analysis delivered to you
  1. News
April 1, 2020updated 02 Apr 2020 5:39pm

Alberta Government announces funding for Keystone XL Pipeline

The Keystone XL Pipeline is to receive more than $1bn of funding from the Canadian state of Alberta to accelerate its construction.

By Matthew Farmer

The Keystone XL Pipeline will receive more than $1bn of funding from the Canadian state of Alberta to accelerate construction.

The Government of Alberta will invest CAD1.5bn ($1.05bn) from today and has guaranteed a CAD6bn ($4.2bn) loan from 2021. The announcement follows six months of funding talks to ensure rapid construction of the 1,947 km Keystone XL pipeline.

Alberta premier Jason Kenney said: “We cannot wait for the end of the pandemic and the global recession to act. There are steps we must make now to build our future focussed on jobs, the economy, and pipelines.

“After construction is complete, we will be able to sell our shares at profit. In addition, the project will have a net return of over CAD30bn to the Alberta taxpayer through royalties and higher prices for Alberta oil in the next 20 years.”

Construction will begin at the US-Canada border immediately.

The announcement says production in Alberta “is limited by the lack of pipelines”.

Content from our partners
How the North of Tyne region is leveraging its legacy to define its future
Q&A with Chevron Lubricants’ Paul Sly, global industrial OEM specialist, and Nathan Knotts, global brand technical manager
The important role of antifoam agents in oil-gas separation and amine treating

It continues: “Without the ability to export more oil, there is no incentive for producers to invest in more production in Alberta. […] Without more pipelines, the future of our oil and gas industry is capped; with today’s announcement, employers and investors should have the confidence to maintain existing projects and to spend new money on new projects.”

These comments were mirrored by i3 Energy when it announced the purchase of fields in Alberta earlier this week.

The pipeline will finish construction and enter service in 2023, when it will carry 830,000 barrels of oil per day.

Related Companies

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU