TC Energy has awarded more than $1.6bn worth of contracts to six major American union contractors for the pipeline work. Credit: Arulonline from Pixabay.

North American energy company TC Energy has awarded more than $1.6bn worth of contracts to six major American union contractors to construct pipelines for Keystone XL Pipeline.

According to the company, the contractors will be directly responsible for recruiting over 7,000 union workers next year and execute pipeline construction across 800 miles in three US states.

The Keystone XL Pipeline is a new 1,897km-long crude oil pipeline being developed by TC Energy. The cross-border pipeline will run from Hardisty in Canada to Steele City, Nebraska and Texas in the US.

It has the capacity to deliver 830,000 barrels per day (bpd) of crude oil and is expected to reduce greenhouse gas emissions by 19 million metric tonnes.

International Union of Operating Engineers General President James T Callahan said: “The awarding of 2021 US construction contracts shows the continued momentum behind Keystone XL.

“The dedicated members of the Operating Engineers are eager and ready to build this critical piece of modern North American energy infrastructure to the highest quality standards.

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“The 8,000 American union jobs that come with 2021 construction is welcome news and irreplaceable as the US continues our economic recovery.”

In August, TC Energy announced that Keystone XL had reached a project labour agreement (PLA) with four labour unions of the United States.

On 30 July, US President Donald Trump issued a ‘Presidential permit’ to allow the existing TC Energy Keystone Pipeline to supply an additional 170,000 barrels per day (bpd) of Canadian crude oil into the US Midwest and Gulf Coast.