The Keystone XL pipeline will connect with an existing pumping station in Steele City.
TC Energy, the company formerly known as TransCanada, announced Tuesday that it plans to proceed with the Keystone XL pipeline.
The company said in a news release that pre-construction activities are underway and it expects the pipeline to be operational by 2023.
“We appreciate the ongoing backing of landowners, customers, indigenous groups and numerous partners in the U.S. and Canada who helped us secure project support and key regulatory approvals as this important energy infrastructure project is poised to put thousands of people to work, generate substantial economic benefits and strengthen the continent’s energy security,” Russ Girling, TC Energy’s president and CEO said in a news release.
“In addition, we thank U.S. President Donald Trump and Alberta Premier Jason Kenney as well as many government officials across North America for their advocacy without which, individually and collectively, this project could not have advanced.”
The $8 billion pipeline will stretch more than 1,200 miles, from Hardisty, Alberta, to Steele City in southeastern Nebraska, where it will connect to an existing pump station.
TC Energy said it lined up $1.4 billion in financing from the provincial government of Alberta to cover construction through 2020 and agreements for the transport of 575,000 barrels of oil daily, the Associated Press reported.
The remaining $6.9 billion in construction costs is expected to be funded through a $4.2 billion loan guaranteed by the Alberta government and a $2.7 billion investment by TC Energy.
Once the project is complete, TC Energy expects to buy back the Alberta government's investment and refinance the loan.
TC Energy has overcome numerous legal and regulatory hurdles since the pipeline was first proposed in 2008.
Among those was having the route through Nebraska altered by a decision of the state's Public Service Commission. That decision was upheld by the Nebraska Supreme Court last August.
However, Jane Kleeb, founder of Bold Nebraska, said the company still faces many hurdles before it can start construction in Nebraska and other states.
"Legally, TC Energy is facing eminent domain lawsuits from landowners, and county boards have not granted permits in Nebraska, while nationally there are several lawsuits in federal court challenging the project’s permits and seeking a preliminary injunction on construction," Kleeb said in a statement. "So while they may have a green light to build in Alberta, they do not have all the permits and regulatory approvals necessary to move forward in America.”
The pipeline is expected to create thousands of construction jobs in the U.S. and the company has estimated it will pay tens of millions of dollars in property and income taxes to state and local jurisdictions.
Construction is set to begin at the pipeline's border crossing in northern Montana, said TC Energy spokesman Terry Cunha.
The company also plans work in April to build camps where pipeline construction workers would live in Fallon County, Montana, and Haakon County, South Dakota. It did not give any estimate on when construction might start in Nebraska.
Girling said TC Energy will "continue to take guidance from all levels of government and health authorities to ensure the safety of workers and community members during the coronavirus pandemic."
Kleeb said starting construction during the COVID-19 pandemic is a bad idea.
"Our rural and tribal communities are strained as it is for medical supplies and hospital beds amid a global pandemic," she said in her statement. "TC Energy must put an end to all activity on Keystone XL in our small towns as the pandemic grows across our country."
Gov. Pete Ricketts said during his daily news conference Tuesday that the state will work with TC Energy to make sure there are proper coronavirus screening measures in place for construction workers coming into the state.
Photos: The Keystone XL pipeline saga
Danny Ruthenberg-Marshall, Lindsey Halvorson
Danny Ruthenberg-Marshall, left, with 350 DC, and Lindsey Halvorson, 20, a student at American University, gather up signs Feb. 24, 2015, after attending a demonstration outside the White House in support of President Barack Obama vetoing the Keystone XL oil pipeline.
Ranchers, farmers, Native Americans join environmentalists to protest the Keystone XL pipeline in Washington
In Washington, D.C., in April 2014, rock star Neil Young (third from left) joins the protest of the Keystone XL pipeline, with Nebraska ranchers and farmers Diana Steskal (second from left) of Atkinson; Art Tanderup (center) of Neligh; and Mike Blocher (third from right) of Antelope County; and Bryan Brewer (second from right), president of the Oglala Sioux Tribe in Pine Ridge, S.D.; and Chief Horse Looking (far right) of Rosebud, S.D.
Governor's papers
Ron Bouska and Bold Nebraska founder Jane Kleeb examine maps related to the proposed Keystone XL pipeline as they and others combed through the collection of Gov. Dave Heineman's papers on Aug. 25, 2015, at the Nebraska State Historical Library and Museum.
Anti Pipeline Concert
Spectators attend the "Harvest the Hope" concert in Neligh, headlining Neil Young and Willie Nelson, on Sept. 27, 2014. The concert was organized to raise money for efforts to oppose the Keystone XL pipeline.
Keystone plaintiffs
Lead plaintiffs Susan and Bill Dunavan stand with Bold Nebraska's Jane Kleeb (right) in a courtroom in York in February 2015.
Keystone XL arrest
Nebraska cattleman Randy Thompson (right) is arrested in February 2013 at a Keystone XL pipeline protest.
Anti-pipline group challenges Keystone eminent domain
A group of people fighting the Keystone XL pipeline posed for a photo July 27, 2015, outside ,the Holt County Courthouse.
Keystone XL hearing
Omaha attorney Dave Domina addresses York County District Court Judge Mary Gilbride during a Feb. 26, 2015, hearing before she granted a temporary injunction pausing TransCanada's condemnation proceedings against landowners in the path of the Keystone XL pipeline.
Keystone XL
Susan Dunavan (left), Suz Straka and Randy Thompson outside the Nebraska Supreme Courtroom on Sept. 5, 2014. They are the landowners who filed the lawsuit against the pipeline bill being considered.
Keystone Pipeline Opposition
“I don’t even feel like I live in the United States any more,” farmer and cattleman Terry Van Housen said, after pipeline company TransCanada filed eminent domain proceedings to get remaining easements it needs to build the Keystone XL pipeline. Van Housen's land outside of Stromsburg is part of the planned route.
Ponca corn
The Cowboy Indian Alliance has planted sacred Ponca corn in an effort to halt construction of the Keystone XL pipeline near Neligh.
Willie Nelson, Neil Young
Willie Nelson and Neil Young laugh after performing the folk song "This Land is Your Land" during the Bold Nebraska Harvest the Hope concert on Sept. 27, 2014. The event was held on a farm directly on the proposed route of the Keystone XL pipeline, which also crosses the historic Ponca Tribe Trail of Tears.
TransCanada Steele City pumping station
Glen Rempe (on platform), a TransCanada pipeline technician, explains the function of the Steele City pumping station for the Keystone XL pipeline to a tour group in September 2014.
Keystone XL
At right, Ken Winston of the Sierra Club claps Sept. 4, 2014, after attorney Dave Domina spoke at the news conference opposing the Keystone XL pipeline.
Climate march
Marchers trekking across the country from Los Angeles to Washington, D.C., on the Great March for Climate Action reached the wind- and solar-powered barn in July 2014 built by Bold Nebraska in the path of the Keystone XL pipeline on Saturday.
Keystone pipeline protest
People walk among teepees set up on the National Mall in Washington, D.C., on April 21, 2014. The Cowboy and Indian Alliance, a group of ranchers, farmers and indigenous leaders, hosted the encampment all week to protest the Keystone XL tar sands pipeline.
Opponents carve anti-pipeline message into field
This huge crop art image, pictured in April 2014, lies on the proposed route of the Keystone XL pipeline.
Keystone XL Pipeline Protest
Demonstrators who strapped themselves to the White House fence in March 2014 chant during a protest against the proposed Keystone XL pipeline.
Ed Schultz
MSNBC news host Ed Schultz stops to talk with Keystone XL pipeline opponents outside of Bold Nebraska's Build Our Energy Barn near Bradshaw in February 2014.
Build Our Energy Barn
Bold Nebraska Energy Director Ben Gotschall positions Keystone XL pipeline opponents in preparation for the arrival of MSNBC news host Ed Schultz at the Build Our Energy Barn.
Keystone Obama
An activist dressed as a polar bear participates in a protest vigil in Lafayette Park across from the White House in February 2014, urging President Obama to reject the Keystone XL pipeline.
Keystone XL Pipeline Construction
The TransCanada Keystone XL Pipeline under construction east of Winona, Texas, in January 2014.
Keystone XL pipeline protest
Patricia Fuller (left) of Council Bluffs and Deirdre Evans of Omaha protest the Keystone XL pipeline Friday, Sept. 27, 2013, outside the Justice and Law Enforcement Center.
Keystone XL pipeline opponents
Randy Thompson (right) addresses a collection of pipeline opponents March 12, 2013, at a meeting at Thompson's home in Martell.
Stephen Harper
Canadian Prime Minister Stephen Harper takes part in a discussion with the Canadian American Business Council in New York, Thursday, Sept. 26, 2013. Harper said he "won't take no for an answer" if the Obama administration rejects the controversial Keystone XL pipeline to the U.S. Gulf Coast.
Oil Pipeline-Delay
Ambient light and noise from the Keystone XL pipeline could harm national resources, wildlife and visitors to parks, including the Niobrara National Scenic River in northern Nebraska, pictured here in 2010, the Interior Department says.
Keystone XL old route
In this 2010 file photo, Dennis and Teri Taylor stand in a pasture near where the proposed Keystone XL pipeline's original route would have cut through their ranch near Stuart.
Keystone XL route security
A wooden stick with a pink ribbon marks the proposed route of the Keystone XL pipeline through farmland near Bradshaw on March 11, 2013.
State Department officials
Teresa Hobgood (top left), presiding official from the U.S. State Department, and assistant presiding official Patrick Hudak listen to a pipeline opponent speak during the State Department-sponsored hearings on the proposed Keystone XL pipeline April 18 at the Heartland Events Center in Grand Island.
Roma Amundson
Keystone XL pipeline supporter Roma Amundson of Lincoln speaks during the U.S. State Department-sponsored hearings on the project Thursday, April 18, 2013, at the Heartland Events Center in Grand Island.
Pipeline fight
Pipeline opponents raise their arm bands to silently speak out against a person speaking during the U.S. State Department-sponsored hearings on the proposed Keystone XL pipeline Thursday, April 18, 2013, at the Heartland Events Center in Grand Island.
Keystone 172
Several thousand people gathered on the National Mall for the "Forward on Climate" rally in Washington, D.C., on Feb. 17, 2013, to oppose the Keystone XL pipeline and demonstrate for other causes.
Nebraska protesters
Brothers Christopher and Ben Gotschall, whose family land near Atkinson lay along the original proposed route of the Keystone XL pipeline, attend a pipeline protest Feb. 18, 2013, in Washington.
Nebraska protesters
Abbi Kleinschmidt and others march in Washington in opposition of TransCanada's Keystone XL pipeline on Sunday, Feb. 17, 2013.
Julian Bond, Michael Brune
Civil rights protester Julian Bond, left, and Sierra Club Executive Director Michael Brune, second from left, gather with activists in front of the White House in Washington, Wednesday, Feb. 13, 2013, as prominent environmental leaders tied themselves to the White House gate to protest the Keystone XL oil pipeline.
Darryl Hannah
Actress Daryl Hannah is arrested outside the White House in Washington, Wednesday, Feb. 13, 2013, as prominent environmental leaders tied themselves to the White House gate to protest the Keystone XL oil pipeline.
Native, pipeline protest
Protesters from Idle No More, a Native social justice movement, and Bold Nebraska join together in a round dance at the Capitol on Monday Jan. 28, 2013, at the conclusion of a demonstration. They were protesting Gov. Dave Heineman's decision to approve a route for the Keystone XL pipeline through Nebraska and showing support for indigenous rights.
Keystone XL Pipeline
Workers use heavy machinery to install sections of the Keystone XL pipeline south of Cushing, Okla., Jan. 15, 2013.
Pipeline grinch
The "Grinch" showed up outside the Governor's residence Monday, Dec. 24, 2012, to urge him to reject the proposed Keystone XL pipeline route.
Pipeline walker
Framed in a side-view mirror, Rick Hammond (left) of Clarks and Ken Ilgunas of Niagara Falls, N.Y., walk along a gravel road west of McCool Junction on the chilly morning of Dec. 11, 2012.
Albion hearing
A standing-room-only crowd filled the public hearing area to give testimony or listen to the comments both for and against the Keystone XL pipeline on Tuesday, Dec. 4, 2012, at the Boone County Fairgrounds.
Albion hearing
Ogalala Lakota Nation vice president Tom Poor Bear of Wanblee, S.D., gives testimony on the Keystone XL pipeline during a public hearing on Tuesday, Dec. 4, 2012, at the Boone County Fairgrounds. Poor Bear was one of 164 people who signed up to speak at the public hearing.
Pipeline special session
Speaker Mike Flood of Norfolk announces that TransCanada has agreed to voluntarily move the Keystone XL pipeline project away from the Sandhills on the floor of the Legislature in November 2011.
Pipeline protest Nov. 12
A crowd gathers in Lincoln's Cooper Park on Saturday, Nov. 12, 2011, to rally against the Keystone XL pipeline.
Washington Pipeline Protest
Demonstrators march with a replica of a pipeline during a protest against the Keystone XL Pipeline outside the White House on Sunday, Nov. 6, 2011, in Washington.
Keystone XL pipeline
This Sept. 19, 2011, aerial photo shows a tar sands tailings pond at a mine facility near Alberta, Canada. Transcanada's proposed Keystone XL pipeline was to snake 1,700 miles from Canada to refineries in Texas.
Keystone XL meeting
Alex Pourbaix, president of TransCanada Corp.'s energy and oil pipelines, speaks to reporters in Norfolk on Tuesday, Oct. 11, 2011. Pourbaix met with state senators including Chris Langemeier (second from left), Speaker Mike Flood and Annette Dubas to discuss the proposed route of the Keystone XL pipeline through the state.
Pipeline Meeting
Four state senators and two TransCanada representatives met for four hours in October 2011 in Norfolk to discuss issues and share information about the proposed Keystone XL pipeline. Shown here (clockwise from top) are Sen. Mike Flood of Norfolk, Sen. Chris Langemeier of Schuyler, Sen. Annette Dubas of Fullerton, Sen. Kate Sullivan of Cedar Rapids (back to camera), Robert Jones, a TransCanada vice president, and Alex Pourbaix, TransCanada president of energy and oil pipelines.
Keystone XL pipeline public meeting
Opponents and supporters attend the U.S. State Department's public hearing on TransCanada's Keystone XL pipeline project at Lincoln's Pershing Center in 2011.
Keystone XL pipeline public meeting
Cody Butler from Fremont and Matthew Theis from Lincoln bring their own brand of protest to the street outside the Pershing Center in advance of a public meeting on the TransCanada Keystone XL pipeline project in 2011.
Keystone XL pipeline
One of two tractor-trailers parked outside Pershing Center on Monday, Sept., 26, 2011, displays support for TransCanada and construction of the Keystone XL pipeline.
Keystone XL pipeline protest
Wearing T-shirts in support of Nebraska farmer Randy Thompson, protesters (left to right) Jane Wilson of Omaha, Lori Fischer of Shelby, Nancy Packard of Lincoln and Mark Wolberg of Lincoln gather outside the White House on Aug. 22, 2011. Members of Bold Nebraska, a group founded by Jane Kleeb, were among the main opponents of the proposal to run the Keystond XL pipeline through the Nebraska Sandhills.
Keystone XL pipeline protesters
About 300 people stood outside the Governor's Mansion on Friday night, Aug. 5, 2011, to express their displeasure with the proposed Keystone XL pipeline.
Stand with Randy
Poster of Randy Thompson in the window of Meadowlark Coffee & Espresso, Monday, Aug. 1, 2011. Thompson is a landowner in Merrick County, Nebraska, who wants to stop the Keystone XL pipeline.
Pipeline Protest Montana
Protesters climb the flagpoles outside of the Capitol in Helena, Mont., Tuesday, July 12, 2011 to hang a sign. Montana Gov. Brian Schweitzer met with roughly 70 pipeline protesters who occupied his office Tuesday and demanded he renounce his support for the Keystone XL Pipeline.
Keystone XL pipeline
Ailani Segura holds a sign in front of the west side of the Capitol in January 2011 as she attended a protest against the proposed Transcanada Keystone XL pipeline with her mother April Segura.
Pipeline
This 2015 photo shows the Keystone Steele City pumping station, into which the Keystone XL pipeline was to connect.
The Associated Press contributed to this report.
Reach the writer at 402-473-2647 or molberding@journalstar.com.
On Twitter @LincolnBizBuzz.
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Matt Olberding
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Matt Olberding is a Lincoln native and University of Nebraska-Lincoln graduate who has been covering business for the Journal Star since 2005.
