TransCanada Corp. has filed a US$15 billion lawsuit against the United States government over its rejection of its Keystone XL pipeline.
“Through the NAFTA claim, TransCanada will be seeking to recover more than US$15 billion in costs and damages that it has suffered as a result of the U.S. Administration’s breach of its obligations (under the North American Free Trade Agreement),” the company said in a release.
The Calgary-based pipeline company announced Wednesday that it had filed a lawsuit in Houston, claiming that U.S. President Barack Obama’s “decision to deny construction of Keystone XL exceeded his power under the U.S. constitution.”
In addition to the constitutional challenge, TransCanada has also filed a claim under the NAFTA arguing that the basis for “the denial was arbitrary and unjustified.”
TransCanada also announced that it expects to post a record non-cash charge of between $2.5 billion and $2.9 billion in its earnings statement as a result of the pipeline’s rejection.
The company also said it invested some $4.3 billion in the project before Obama denied the pipeline’s application on Nov. 6, 2015.
TransCanada Corp files US$15-billion lawsuit against U.S. government for rejecting Keystone XL