01:28 PM EDT, 07/16/2024 (MT Newswires) -- TC Energy's ( TRP ) claim for more than $15 billion in damages as a result of the US government's cancellation of the Keystone XL pipeline permit was quashed by an arbitration tribunal Tuesday.

"We are both disappointed and frustrated with the Tribunal's decision to deny our right to bring a legacy [North American Free Trade Agreement] claim," Patrick Keys, TC Energy's ( TRP ) general counsel, said in an emailed statement.

"This ruling does not align with our expectations and views of the plain interpretation of the protections NAFTA and the [US-Mexico-Canada Agreement] were designed to offer. TC Energy ( TRP ) was treated unfairly and inequitably in the revocation of the Permit, which was driven by political considerations," he added.

The energy infrastructure company filed a claim in 2021 arguing that the US government was in breach of its free trade obligations under NAFTA legacy rules.

The tribunal decided that the claim cannot proceed and cited the transition rules under the USMCA, which provide that investments made under NAFTA are protected only if breaches happened before July 1, 2020, according to the company.

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