The Keystone XL crude oil pipeline owned by TC Energy has been scrapped by President Biden, which may add about 48,000nt (43,545mt) of steel scrap supply into the market while subtracting about 1,000 short-term construction jobs.
President Biden revoked the pipeline’s permits which ends a cross-border project that gained reprieve under former President Trump. The existing pipeline runs from Alberta, Canada to the US storage center in Cushing, Oklahoma, and on to the US Gulf.
TC Energy predicted it would take approximately 660,000nt of steel to install the US share of the pipeline, which was expected to begin service in 2023.
The pipeline would have covered nearly a total of 1,210 miles or 1,947 kilometers. Close to 150 km of pipe was already installed with 2.2 km further installed at the US-Canadian border by 2020 year-end, according to reports, equating to around 48,000nt of steel.
Hot-rolled coil is currently priced at $1,020-$1,060/nt ($1,124-$1,168/mt), which could mean the unused pipeline could have been worth at least $48.96mn in today’s primary steel market. However, the previously supplied material would have to sell as a secondary metal if not as scrap.
According to reports, a decision regarding the steel’s outcome has not been made yet.
TC Energy also owns a power and storage business while operating North America’s largest integrated natural gas pipeline system from British Columbia to Mexico.