The scrapping of Keystone XL not solely means the top of multibillion-dollar pipe dream for TC Energy Corp. — it additionally leaves behind 48,000 tons of metal.
US President Joe Biden revoked permits for the oil pipeline on his first day in workplace, killing a cross-border mission that had received a four-year reprieve beneath his Republican predecessor, Donald Trump. The pipeline would have spanned nearly 1,900 kilometers (1,180 miles). TC Energy anticipated needing about 660,000 tons of metal only for the US portion.
About 150 kilometers of pipe had been put in and a further 2.2 kilometers had been accomplished on the Canada-US border as of the top of 2020. (Bloomberg)
About 150 kilometers of pipe had been put in and a further 2.2 kilometers had been accomplished on the Canada-US border as of the top of 2020, the Canada Energy Regulator stated in a Jan. 22 electronic mail. That would quantity to almost 48,000 tons of metal, assuming commonplace dimensions of line pipe, in response to Bloomberg calculations primarily based on trade standards.
The benchmark metal value is about $1,060 a ton, which might worth the haul at nearly $51 million — although as scrap it will be bought for much less. Secondary steel, which is any scrap that’s already previous use for its unique goal, sells at a reduction to new types of the uncooked materials. Once bought, the scrap steel is remelted by the customer and fashioned into new metal merchandise.
TC Energy might to should promote already delivered steel to secondary markets. While unclear precisely how a lot metal the Calgary-based agency owns that’s tied to Keystone — some may be in storage — trade observers say it probably isn’t sufficient to make a dent in the marketplace. The quantity that might be bought can be a fraction of the full US metal market demand of round 100 million tons a 12 months.
TC Energy couldn’t be instantly reached for remark. A spokesman for the Canada Energy Regulator, which oversees the Canadian portion of the mission, stated no choices have been made on the metal.
The regulator “continues to engage with TC Energy since the presidential permit for the Keystone XL Project was revoked,” the Canadian company stated within the assertion, including that it’s going to “continue its regulatory oversight, focusing on ensuring safety and environmental protection.”
