TC Energy Says Keystone XL Construction Continues Despite US Court Decision

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CALGARY – Construction on the Keystone XL pipeline is continuing at an accelerated pace despite a court ruling last month that struck down a national permit to allow pipelines to cross waterways, builder TC Energy Corp. said Wednesday.

The Calgary-based company filed a motion earlier this week to suspend the order of a US district judge who canceled the USArmy Corps of Engineers’ drinking water license, said Bevin Wirzba, senior vice president liquid pipelines for TC Energy.

The permit applied to a wide range of projects, including Keystone XL, but the judge concluded that it had not sufficiently taken into account the effects on endangered species such as the pale sturgeon.

“We have a number of options we are working on to address the regulatory and legal aspects of this situation,” Wirzba said in a conference call Friday to discuss the first quarter results.

TC Energy teams ahead of schedule for Canada-US border crossing, he said, adding that they are also organizing pipelines and construction sites while exploring ways to continue construction if the decision blocks the crossing of the American river along the 1,930 km route from Alberta to Nebraska.

“Obviously, our preferred path is to move forward with the (construction) spreads that we have identified for the United States, but we maintain that we will be able to complete a significant amount of work in the United States in 2020, even if this doesn’t is not the case. the same scale in which we started the year, “he said.

TC Energy announced on March 31 that it would go ahead with the US $ 8 billion Keystone XL pipeline after the Alberta government agreed to invest C $ 1.5 billion and provide loan guarantee to restart work.

It would transport up to 830,000 barrels per day of Canadian crude oil.

Opponents in the United States who have disputed the plans for years have said the decision should not have been made during the economic and health crisis caused by the COVID-19 pandemic.

TC Energy expects some of its investment plans to slow due to the virus, but has so far seen no negative effect on its bottom line, CEO Russ Girling said during the call.

“With approximately 95% of our comparable EBITDA (adjusted profit) from regulated or long-term contracted assets, we are largely isolated from the volatility associated with volume throughput and commodity prices experienced by many others,” said he declared. .

The company formerly known as TransCanada reported first-quarter profit of $ 1.15 billion, compared to $ 1.0 billion a year ago.

Revenues for the quarter ended March 31 totaled nearly $ 3.42 billion, compared with nearly $ 3.49 billion in the same quarter last year.

TC Energy says its comparable earnings for the first quarter of 2020 were $ 1.1 billion or $ 1.18 per share, compared to $ 1.0 billion or $ 1.07 per share in 2019.



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