Canadian indigenous group Natural Law Energy is planning to invest up to $1 billion ($763.77 million U.S.) in the Keystone XL oil pipeline despite the fact that U.S. President-elect Joe Biden has promised to kill the project.
Keystone XL would carry 830,000 barrels per day of crude oil from Alberta to the U.S. Midwest. It has faced a decade of opposition from U.S. landowners, environmental groups and indigenous tribes. Some indigenous groups oppose pipeline projects, but other Canadian First Nations have invested in the industry to share in profits and jobs.
The investment by Natural Law Energy, a coalition of five First Nation groups, comes with Keystone XL construction well underway in Canada. The investment provides Natural Law with a percentage of Keystone XL’s profits.
The transaction’s first phase will close in the third quarter of 2021 contingent on financing. The Keystone XL pipeline is scheduled to enter service in 2023, provided it proceeds. Biden has said he will revoke the pipeline’s permits in the U.S., effectively halting the project. It remains to be seen whether Biden will follow through on his vow to halt Keystone XL once he is in office.
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