CALGARY – looking forward already to the post-pandemic, the prime minister Jason Kenney has announced, Tuesday, a major investment in the pipeline project Keystone XL so that the construction of the pipeline could resume “tomorrow”.
The province has agreed with the proponent of the project, TC Energy Corporation (formerly TransCanada), to invest $ 1.5 billion in Keystone XL, so that work could resume. A secured loan of $ 6 billion, will follow in 2021.
The announcement Tuesday comes as the price of a barrel of oil from oil sands has reached a historical minimum, this week, trading below $ 4, which is the price of two coffees.
“It’s going to be long before prices return to normal, but, inevitably, they will return to normal”, has held, however, the first minister Kenney.
For this reason, Mr. Kenney believes it is necessary to invest in the oil industry. In a press briefing Tuesday afternoon, he explained that the world should have access to the oil reserves in canada, which it described as “stable” and “democratic”. The investment “will allow the oil sands to continue to be a reserve of stable energy for the world”, has he supported.
“We will not allow the worst nations of the world have a monopoly on the energy market”, added the prime minister.
Long rebuffed both in Canada and in the United States, where he had been rejected by the administration of former president Barack Obama, Keystone XL must be able to send approximately 840 000 barrels of oil per day to refineries in the gulf of Mexico. Its construction will generate approximately 7,000 direct and indirect jobs in Alberta and is expected to be completed in the summer of 2023.
The alberta government estimates that Keystone XL will result in it realizing $ 30 billion in royalties.
“We can’t afford to lose another season. We must start now [the work],” said Mr. Kenney
“We believe that this is our last chance to make a major project of oil pipeline”, he added, referring to the walls that confronted other projects such as Trans Mountain, Energy East.
The prime minister of alberta, which the province suffers for years because of the low value of a barrel of oil, has also stated that a comprehensive plan of assistance is in the pipeline to revive the economy by diversifying the latter after the pandemic COVID-19.