The Financial Post reports in its Friday edition that oil companies that have committed to ship their crude on the Keystone Xl pipeline will be on the hook for millions in contingency payments to TC Energy if the pipeline is cancelled. The Post's Geoffrey Morgan writes that several Canadian oil producers agreed to the payments when they signed contracts to ship oil on TC Energy's 830,000-barrel-per-day pipeline between Alberta and the U.S. Gulf Coast. Those payments would be triggered if the project is cancelled on or before March 31, 2021. "There are many stakeholders who stand to benefit economically from an operational Keystone XL," TC Energy said in a statement to the Post. "As a result, it was reasonable for us to align with those stakeholders to share in the risk and reward of the project." The company did not explain why the contingency payments were required for the current Keystone Xl project but not when the project was first proposed, and eventually rejected, under former U.S. president Barack Obama. The risk of a Keystone XL cancellation has increased significantly in recent months as polls. Former U.S. vice-president and current Democratic presidential candidate Joe Biden has promised to kill the project.
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