Canada: controversial Keystone XL pipeline project abandoned

Pipes from the Keystone XL pipeline project stored in a depot in Gascoyne, North Dakota, in January 2017. © REUTERS - Terray Sylvester

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Five months after President Joe Biden blocked the construction of the Keystone XL pipeline in the United States, the Canadian company TC Eenrgy, owner of the pipeline, put an end to its work.

This cancellation puts an end to a ten-year battle between supporters of oil development and various environmentalist and indigenous groups who refused the passage of this pipeline.

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With our correspondent in Montreal,

Pascale Guéricolas

The first bone of contention between Justin Trudeau and

Joe Biden almost five months ago

, the controversial Keystone XL pipeline project between Canada and the United States, denounced by environmental activists, was therefore officially buried on Wednesday. June 9. " 

TC Energy confirmed today after a full review of its options and in consultation with its partner, the Government of Alberta, that it has terminated the Keystone XL pipeline project

 ," the Canadian operator said in a statement. .

The Canadian group had announced the suspension of work a few hours before the signing of the decree by Mr. Biden, on January 20, as soon as he took office.

The group based in Calgary, in Western Canada, had expressed its disappointment, announcing accordingly "

 the layoff of thousands of unionized workers 

."

For its part, the government of Alberta said it had also left the project and said "

 explore all options 

" to recover its investment, according to a press release.

The province estimates that the abandonment of the project should cost it 1.3 billion Canadian dollars (881 million euros).

Keystone XL is an oil pipeline project between Canada and the United States, launched in 2008 and led by the Canadian group TC Energy. The site, estimated at 9.1 billion dollars (7.5 billion euros), would have allowed to transport more than 800,000 barrels of oil per day, between the province of Alberta, located in western Canada , and the American refineries in the Gulf of Mexico. Canada has the third-largest proven oil reserves in the world, mostly contained in the western oil sands whose exploitation is criticized for its environmental impact.

Started in 2005 while George W. Bush led the United States, the pipeline project experienced its first shutdown in 2008 when Barack Obama won the presidency. His successor

Donald Trump is getting him back on track

. Before Joe Biden puts the last nail in the coffin of this oil pipeline that does not fit with his policy to fight against climate change. After five months of procrastination, the owners of Keystone XL abandon their project after having built 200 kilometers of pipelines on the Canadian side.

Tax revenues and the oil-related economy could decline in the coming months according to experts' predictions.

Without large volume outlets to the United States, a barrel of Alberta oil risks losing value.

The only hope for companies in the sector is the other pipeline, that of Transmountain.

It has to transport the fossil fuel to ports on the west coast of British Columbia and then to Asia.

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