Pipeline giant TC Energy is officially seeking compensation from the US government for the cancellation of the cross-border Keystone XL expansion project.
The Calgary-based company formally filed for arbitration in its claim for “economic damage” resulting from US President Joe Biden’s decision to cancel the project.
The cancellation of the presidential permit issued by his predecessor Donald Trump was one of Mr. Biden’s first decisions when he took office in January.
The decision effectively ended a 13-year conflict that has intermittently plagued three US presidents and two Canadian prime ministers.
In the process, Keystone XL became a symbol for environmental activists determined to prevent what they saw as a dangerous and damaging expansion of Alberta’s tar sands.
The company officially gave up any hope of expansion in June and, shortly thereafter, filed a notice of its intention to seek compensation under the former North American Free Trade Agreement (NAFTA).
Its replacement, the Canada – United States – Mexico Agreement (CUSMA), allows companies to file claims for lost investments under the terms of the previous agreement.
“As a public company, TC Energy has a responsibility to its shareholders to seek to recover the losses suffered as a result of the revocation of the permit, which resulted in the shutdown of the project,” the company said in a statement.
“We will not comment further and will follow the process as directed. “
Officials from the US State Department and the office of US Trade Representative Katherine Tai did not immediately respond to media inquiries on Tuesday.