An American energy firm has confirmed it will proceed with the construction of a crucial pipeline that will boost the economy by $8bn (€7.3bn).
TC Energy Corporation is behind the 1,210 mile long Keystone XL Pipeline Project that will be capable of delivering 830,000 barrels per day of crude oil from Alberta to Steele City, Nebraska.
“We appreciate the ongoing backing of landowners, customers, indigenous groups and numerous partners in the US and Canada who helped us secure project support and key regulatory approvals as this important energy infrastructure project is poised to put thousands of people to work, generate substantial economic benefits and strengthen the continent’s energy security,” said Russ Girling, TC Energy’s President and Chief Executive Officer.
“In addition, we thank US President Donald Trump and Alberta Premier Jason Kenney as well as many government officials across North America for their advocacy without which, individually and collectively, this Project could not have advanced.”
The pipeline will connect with TC Energy’s existing facilities to reach US Gulf Coast refiners to meet critical needs for transportation fuel and useful manufactured products. With pre-construction activities underway, the pipeline is expected to enter service in 2023.
“During construction, we will continue to take guidance from all levels of government and health authorities to determine the most proactive and responsible actions in order to ensure the safety of our crews and community members during the current COVID-19 situation. Construction will advance only after every consideration for the health and safety of our people, their families and of those in the surrounding communities has been taken into account,” added Girling.
The Project is underpinned by new 20-year transportation service agreements for 575,000 Bbl/day with a group of strong, credit-worthy counterparties which are expected to generate approximately US$1.3bn (1.19bn euros) of earnings.
“Strong commercial and financial support positions us to prudently build and fund the project, along with our existing $30bn (27.4bn euros) secured capital programme, in a manner that is consistent with maintaining our strong financial position and credit metrics,” added Girling. “Once completed, approximately 98 per cent of the company’s consolidated EBITDA is expected to come from regulated or long-term contracted assets.”
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