Alberta Premier Jason Kenney is making another demand of Justin Trudeau over the Keystone XL pipeline ahead of the Prime Minister’s call today with new U.S. President Joe Biden.
In a letter to Mr. Trudeau, Mr. Kenney reiterates that the Prime Minister must press for a meeting with Mr. Biden so that Canada can make its case for the pipeline, which Mr. Biden cancelled this week on his first day in office.
Mr. Kenney also repeats that if that fails, Mr. Trudeau must take retaliatory measures such as trade sanctions.
But he also asks that Mr. Trudeau press Mr. Biden for direct compensation.
The Premier committed $1.5-billon to the project last year, with another $6-billion in loan guarantees.
Mr. Biden made it clear last spring that he would cancel the Keystone line if he became president. He said that shipping more product from Alberta’s oil sands did not mesh with his broader objective of battling climate change.
The Keystone line would have taken more Alberta oil to refineries and ports in the United States to relieve a North American bottleneck that has led to discounts and sometimes sharp reductions in the price of Alberta’s oil.
In the letter dated Thursday, Mr. Kenney says the Keystone project that Mr. Biden once rejected is now a different, more environmentally friendly undertaking.
“Keystone XL will be the first pipeline of its kind to operate at net-zero emissions on its first day of operations and will purchase 100 per cent of its power load from renewable energy sources,” Mr. Kenney writes.
“I propose that we approach Washington together to begin a conversation about North American energy and climate policy.”
If that doesn’t happen, he is pushing for “proportionate economic consequences.”
“At the very least, I call upon the government of Canada to press the U.S. administration to compensate TC Energy and the government of Alberta for billions of dollars of costs incurred in the construction of Keystone XL to date.
“These costs were incurred on the assumption that the United States had a predictable regulatory framework and based on the presidential permit authorizing the Keystone XL border crossing, which was installed in the summer of 2019.”
In Calgary, Opposition NDP energy critic Kathleen Ganley called again for Mr. Kenney to release details of the Keystone deal.
She said Mr. Kenney knew when he spent the money that Keystone was risky, given it was facing further legal challenges and that the Democrat contender for president at the time, Mr. Biden, had opposed it in the past.
“The path forward [for Keystone] depended on the re-election of Donald Trump,” Ms. Ganley said.
“Premier Kenney made a $7.5-billion bet on Trump’s re-election. Unfortunately for Albertans, Jason Kenney lost that bet, and now he’s trying to blame everyone but himself for losing billions of Albertans’ money.
“The responsibility rests squarely on his shoulders.”
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