TransCanada may have a shot at winning a proposed trade challenge against the U.S. over the rejection of the Keystone XL pipeline, said Ivey Associate Professor Guy Holburn.
TransCanada has given notice that it will file a North American Free Trade Agreement (NAFTA) claim seeking US$15 billion in damages over U.S. President Barack Obama's rejection of the pipeline in November.
Although the U.S. has never lost a claim under NAFTA, Holburn, Director of the Ivey Energy Policy and Management Centre and Suncor Chair in Energy Policy, told The Canadian Press TransCanada has a strong case based on how differently it was treated when it built the first phase of Keystone.
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Although Keystone’s first phase proceeded smoothly through the regulatory system, the XL expansion, which would have provided a more direct route for oilsands crude to reach Gulf Coast refineries, was in limbo for seven years before being rejected.
"This has been a very exceptional project that's been put through the political wringer," said Holburn.
Holburn was quoted in several media publications, including CTV News.
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