A $1.5 billion investment in Alberta’s Keystone XL pipeline has been announced by the provincial government. The agreement was made to ensure the project is up and running by 2023 according to CTV News.
The province reported a six month negotiation with TC Energy Corporation before a final agreement was reached.
An investment of $1.5 billion will be provided this year by the Government of Alberta, who will also be giving a loan guarantee of $6 billion in 2021.
Construction is expected to begin right away by TC Energy in Alberta and an estimated 1,400 jobs will be created along with 5,400 indirect jobs.
In a statement released on Tuesday, Premier Jason Kenney said, “We cannot wait for the end of the pandemic and the global recession to act. There are steps we must make now to build our future focused on jobs, the economy, and pipelines. Today we are moving forward with a project that is essential to our future prosperity.”
“This investment in Keystone XL is a bold move to re-take control of our province’s economic destiny and put it firmly back in the hands of the owners of our natural resources, the people of Alberta. The Government of Alberta is confident that this is a wise investment.”
According to Kenney, Alberta will be able to make a profit on its shares once the project is completed. The pipeline is estimated to bring Albertan taxpayers a net return of more than $30 billion through higher Alberta oil prices and royalties over the following 20 years.
The Keystone XL pipeline will stretch 1,947 kilometers and have the ability to move 830,000 barrels of oil to Steele, Nebraska daily.