Calgary-based Pipeline giant TC Energy seeks to recoup the cost incurred by the now-canceled Keystone XL pipeline project.
The Canadian company had already launched an official request for arbitration in pursuit of "economic damage" compensation following President Joe Biden's decision to cancel the major pipeline project.
TC Energy became the first victim of the new administration's decision following the cancellation of the presidential permit issued by the former US President, Donald Trump, in January 2021.
The President's January decision concerning the Keystone XL pipeline marked a 13-year-old dispute that caused strife between two Canadian prime ministers and three American presidents.
The Keystone XL suffered a setback after a group of environment activists consistently called for the project's suspension, claiming it would have devastating effects on the environment. The activists considered the project a dangerous expansion of Alberta's oil sands.
After the project's suspension, the company shelved the hope for expansion in June 2021 and embarked on legal compensation under the now-defunct North American Free Trade Agreement.
"As a public company, TC Energy has a responsibility to our shareholders to seek recovery of the losses incurred due to the permit revocation, which resulted in the termination of the project," the company stated.
Based on the new U.S.-Canada-Mexico Agreement that replaced the North American Free Trade Agreement, the companies affected can file legacy claims for investment losses under the previous agreement.