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Construction on Keystone XL pipeline to begin immediately

BILLINGS, Mont. (AP) – Major construction projects are moving forward along both U.S. borders and raising fears that the influx of workers could spread the coronavirus. Along the northern border, a Canadian company says it will start work this month on a disputed oil pipeline that could bring thousands of workers to rural areas in Montana, South Dakota and Nebraska.

Along the southern border, workers travel every day from camps in New Mexico to build President Donald Trump’s border wall.

Residents, tribal leaders and state officials worry that the work could make problems worse in rural areas with little or no medical infrastructure capable of handling an outbreak.

The Canadian company TC Energy says it plans to start construction of the disputed Keystone XL oil sands pipeline running from Canada through the U.S. Midwest in April.

Alberta Premier Jason Kenney said, “We cannot wait for the end of the pandemic and the global recession to act. There are steps we must make now to build our future focused on jobs, the economy, and pipelines.

Calgary-based TC Energy says the provincial Alberta government will invest over $1 billion to cover construction costs through 2020. The company plans to begin at Montana’s border with Canada. Alberta Premier Jason Kenney says the province’s resource-dependent economy could not afford for Keystone XL to be delayed any longer.

But Montana Gov. Steve Bullock says he’s worried about an influx of an estimated 100 workers during the coronavirus pandemic. The project is bitterly opposed by environmentalists and some American Indian tribes

In Nebraska, that state’s Governor praised the announcement that construction of the Keystone XL pipeline is moving forward immediately. “The long-awaited start of construction on the Keystone XL pipeline is tremendous news for Nebraskans,” said Ricketts. “The project will upgrade our energy infrastructure, increase our nation’s energy independence, and bring great-paying jobs to our state. Additionally, several Nebraska counties will benefit from a surge in property tax revenues from the pipeline project.”

The Government of Alberta has also guaranteed a $4.2 billion loan for the project in 2021. Alberta premier Jason Kenney said, “We cannot wait for the end of the pandemic and the global recession to act. There are steps we must make now to build our future focused on jobs, the economy, and pipelines.

“After construction is complete, we will be able to sell our shares at profit. In addition, the project will have a net return of over $30 billion to the Alberta taxpayer through royalties and higher prices for Alberta oil in the next 20 years.”

The announcement says production in Alberta “is limited by the lack of pipelines”. It continues, “Without the ability to export more oil, there is no incentive for producers to invest in more production in Alberta. […] Without more pipelines, the future of our oil and gas industry is capped; with today’s announcement, employers and investors should have the confidence to maintain existing projects and to spend new money on new projects.”

Construction will begin at the US-Canada border immediately.

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