Page 8 - NorthAmOil Week 23 2021

NorthAmOil PIPELINES & TRANSPORT NorthAmOil

TC Energy officially cancels Keystone XL

NORTH AMERICA CANADA’S TC Energy has officially cancelled activism, was quoted by Bloomberg as saying.
its Keystone XL oil pipeline, which was effec- The pipeline was expected to carry 830,000
tively killed off in January when new US Presi- barrels per day (bpd) of oil sands crude from
dent Joe Biden revoked the cross-border permit Alberta to Nebraska, from where it would have
for the project. been shipped on to the US Gulf Coast. Oppo-
The decision, which TC Energy said it had nents of the project cited concerns that it would
made after a “comprehensive review of its help raise production from the comparatively
TC Energy had already options”, and in consultation with the provin- emissions-intensive oil sands.
suspended construction cial government of Alberta – an investor in the The pipeline’s costs were estimated to have
on the pipeline project – came as no surprise. The company had risen to $9bn before its cancellation. Last year, the
following Biden’s already suspended construction on the pipeline Alberta government committed to a CAD1.5bn
decision. following Biden’s decision. ($1.2bn) equity investment in the project, to be
Keystone XL had become a lightning rod followed by a CAD6bn ($5.0bn) loan guarantee
for protests by environmental groups and other this year, in an attempt to ensure the pipeline
opponents and had gone through 16 years of would be built.
ups and downs under successive US govern- Alberta Premier Jason Kenney said this week
ments while its already high costs steadily his government remained “disappointed and
escalated. frustrated” with the circumstances surrounding
“The protest over the Keystone pipeline was a Keystone XL’s demise.
massive development in the climate movement,” TC Energy said in its statement that it con-
and the project’s cancellation “is a testament to tinued to progress CAD20bn ($16.5bn) of
the effectiveness of collective citizen action,” secured growth projects, CAD7bn ($5.8bn) of
a Brown University visiting professor, Rob- projects under development and a number of
ert Brulle, who is an expert on environmental additional initiatives.™

FERC approves two gas pipeline projects

US THE US Federal Energy Regulatory Commis- North Dakota’s Bakken play. The $260mn pro-
sion (FERC) has approved two new natural gas ject involves construction of around 62 miles
projects, plus upgrades to existing infrastructure (100 km) of 24-inch (610-mm) pipeline and 20
on a third. The approvals came despite dissent miles (32 km) of 12-inch (305-mm) pipeline in
by two Democrat FERC commissioners over western North Dakota. A new compressor sta-
concerns related to emissions from the pipelines. tion and additional associated infrastructure will
The commission granted approvals to the also be built.
North Bakken Expansion project in North The Gulf Run project is being developed by
Dakota and the Gulf Run project in Louisiana, as Enable Midstream Partners, primarily to serve
well as approving modifications to existing com- the Golden Pass LNG export facility, which is
pressor facilities on Line CP, also in Louisiana. currently under construction on the Texas side
The decisions came after FERC chairman of the Texas-Louisiana border with a targeted
Richard Glick said the commission would not start date of 2025. The project includes about 134
delay acting on pending applications while it miles (216 km) of new pipe and other infrastruc-
considers reforms to its approval process. The ture to carry roughly 1.7bn cubic feet (48.1mn
FERC is considering incorporating concerns cubic metres) from Enable’s existing Westdale
about greenhouse gas (GHG) emissions and compressor in Red River Parish to an intercon-
climate change into the process, and a group nect with the Golden Pass Pipeline near Starks.
of US Senators had voiced their concerns over Enable has estimated the cost of Gulf Run at
this leading to delays in pending projects being $540mn in its first-quarter earnings release in
approved. May, saying the project could be brought into
However, Glick assured the senators in late service in late 2022 if it received a timely FERC
May that the commission had already approved approval. However, the FERC estimated the pro-
certain projects recently and agreed that it ject’s cost at $1.2bn in its filing.
should not delay pending applications. The third project to be approved – modi-
The North Bakken Expansion project is fication to Line CP compressor facilities – is
being developed by WBI Energy, the pipeline also operated by Enable, and is estimated to
subsidiary of MDU Resources Group, to serve cost $46mn.™

P8 www. NEWSBASE .com Week 23 10•June•2021