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Government’s agreement to provide financial support to Calgary-based TC Energy Corporation will help enable the critical completion of the KXL pipeline. This investment includes $1.5 billion in equity investment in 2020, followed by a $6 billion loan guarantee in 2021.
This investment has already resulted in the completion of the 2.2 kilometre Canada-U.S. border crossing, and construction is now underway on the Alberta segment of the pipeline.
The project is expected to be completed and in service in 2023.
Benefits to Albertans
During the next two years of construction, KXL will see roughly 2,000 construction workers hired in Alberta, spurring thousands of additional jobs and increased economic activity in associated trades, retail, and hospitality services along the construction route.
Overall, the project will contribute approximately $2.4 billion to Canada’s GDP and will generate more than $7 million in property taxes in the first year in service. It’s estimated the project will generate $30 billion in tax and royalty revenues for current and future generations of Albertans.
Once operational, KXL will provide North America with a stable, secure supply of crude oil, reducing reliance on supply from OPEC. The pipeline will carry 830,000 barrels per day of crude from western Canadian oil fields to Gulf Coast refineries in the U.S where it will meet critical needs for the production of life-enhancing goods – from smartphones and appliances to medication and household products – as well as transportation fuel.
Along with the scheduled completion of Enbridge’s Line 3 in the next year and the Trans Mountain expansion project in late 2022, KXL would be another significant step in increasing Alberta’s takeaway capacity and access to international markets. This will help protect the value of the province’s energy resources and attract new investment.
About the investment
The Government of Alberta will contribute up to $1.5 billion in equity investment in 2020.
The government will backstop the KXL project to a maximum of $6 billion, via a loan guarantee, in 2021. Any project overruns will be the responsibility of TC Energy.
After construction is complete, Alberta will be able to sell our shares at a profit.
KXL construction in Alberta
The KXL Pipeline offers a safe, reliable and environmentally responsible way to deliver crude oil from western Canada to refineries in the US Gulf Coast.
The project will run from Hardisty, Alberta, to Steele City, Nebraska and will cover 1,947 kilometres. Starting in July, a total of 269 kilometres of pipelines and five pump stations will be constructed in Alberta over the next two years.
Keystone XL pipeline route map