Page 8 - NorthAmOil Week 23 2021
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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
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