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By The Canadian Press

TC Energy expects ‘substantive’ charge related to Keystone XL permit revocation

Feb 18, 2021 | 6:32 AM

CALGARY – TC Energy Corp. says it expects to take a “substantive” charge when it reports its first-quarter results for 2021 due to the decision by U.S. President Biden to revoke the presidential permit for its Keystone XL pipeline.

The company says it couldn’t yet say what the size of the charge will be, which it expects to be predominantly non-cash, would be, but that it was assessing its options.

It also noted that the viability of certain projects currently associated with the Keystone XL pipeline was also being reviewed.

“While we were disappointed with the recent action to revoke the presidential permit for the Keystone XL pipeline, we have a large and diversified asset base that continues to perform extremely well and are advancing $20 billion of secured capital projects, together with a substantive portfolio of other similarly high quality opportunities under development,” TC Energy chief executive Francois Poirier said in a statement.

Biden promised in his election campaign to cancel Keystone XL and did so on his first day in office last month.

TC Energy stopped capitalizing costs, including interest during construction, after the decision was announced and said it will evaluate the carrying value of its investment in the pipeline, net of project recoveries.

by The Canadian Press