![US Wins $15B Arbitration Fight Over Keystone Pipeline Extension](/sites/default/files/styles/hart_news_article_image_640/public/image/2024/07/us-wins-15b-arbitration-fight-over-keystone-pipeline-extension.jpg?itok=-E1If5QV)
At the time of the Biden’s decision, the U.S. and Canada were operating under the United States-Mexico-Canada Agreement, which replaced NAFTA in 2020. (Source: Shutterstock/ TC Energy)
The U.S. government is not liable to Canadian midstream company TC Energy’s $15 billion claim for the 2021 cancellation of the Keystone pipeline extension, an international panel of arbiters ruled 2-1 on July 12.
The arbiters for the World Bank’s International Centre for Settlement of Investment Disputes ruled that TC had no case for the international panel because the North American Free Trade Agreement (NAFTA), under which TC planned the pipeline extension, was no longer in effect when the Biden administration canceled the project, the Well News reported.
TC Energy’s attempt to build the pipeline became a political football when the project was first proposed in 2008. The original plan was to connect terminals in Hardisty, Alberta and Steele City, Nebraska.
Environmental and Native American groups opposed the plan, which the Obama administration delayed in 2015. The Trump administration rescinded the delay in January 2017 as one of its first acts in office.
The Biden administration responded by canceling the project’s permit in January 2021 in one of its first acts of office. TC Energy then canceled the project and went forward with a $15 billion claim against the U.S. under NAFTA.
At the time of the Biden’s decision, the U.S. and Canada were operating under the United States-Mexico-Canada Agreement, which replaced NAFTA in 2020.
Recommended Reading
Hess Midstream Subsidiary Plans Private Offering of Senior Notes
2024-05-08 - The proposed issuance is not expected to have a meaningful impact on Hess Midstream’s leverage and credit profile, according to Fitch Ratings.
Blue Racer Midstream Prices Senior Notes Offering
2024-05-15 - Net proceeds from the sale of senior notes will be used to pay off debt and other general corporate purposes.
China Not Continuing Mega Oil-backed Loans to Latin America
2024-06-18 - China, which lent around US$120 billion to Latin America and the Caribbean between 2005-2023, isn’t expected to resume the mega oil-backing loans of yesteryear as the focus turns to debt negotiations.
NOG Lenders Expand Revolving Credit Facility to $1.5B
2024-04-30 - Northern Oil and Gas’ semi-annual borrowing-base redetermination left its reserved-based lending unchanged at $1.8 billion.
Utility, Clean Energy Company Allete to Go Private in $6.2B Deal
2024-05-06 - The Minnesota-based utility said on May 6 it agreed to be acquired by a partnership led by Canada Pension Plan Investment Board and Global Infrastructure Partners.