The province is making a preferred equity investment in the 830,000-barrels-per-day pipeline project that would carry oil from Alberta to the U.S. Gulf Coast, which is home to the largest concentration of heavy oil refineries in the world.
Any cost overruns will be paid by TC Energy, Kenney said, adding the government’s exposure to the project is limited to the $7.5 billion in preferred equity and loan guarantees.
Oil prices have crashed in the last month as the coronavirus pandemic has caused a dramatic fall in global demand for oil. At the same time, Saudi Arabia and Russia have flooded the market with crude as they engage in a price war.
However, Kenney said, the price war in the middle of a health crisis “highlights now more than ever why we need energy independence” and an interconnected North American oil and gas market.