TC Energy seeks $15 billion from US government for Keystone revocation

Quantum Commodity Intelligence - The company that developed the Keystone XL pipeline to carry crude oil from the tar sands in Alberta to storage in Oklahoma and refineries in Texas is to sue the US government for a breach of its obligations under the US-Canada-Mexico trade deal.

TC Energy, which halted work on the decade-long project last month after President Biden revoked its permit, said it was seeking damages of $15 billion.

"TC Energy will be seeking to recover more than US$15 billion in damages that it has suffered as a result of the U.S. Government's breach of its Nafta obligations," the company said on its website on Friday.

"The Notice of Intent was filed with the U.S. Department of State, Office of the Legal Adviser," it added.

The company had previously said that the revocation would lead to the loss of thousands of union jobs.

President Biden revoked the pipeline's permit in his first day in office, citing concerns over climate change.

The US has a target to cut emissions of heat-trapping gases 50% under 2005 levels by 2050.

The project has been criticised by environmentalists as crude oil extracted from tar sands is among the most carbon-intensive on the planet.