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TransCanada will reapply for Keystone XL permit

01.18.2012  | 

TransCanada said late Wednesday that it had received the US Department of State's decision that the Presidential Permit for its proposed Keystone XL pipeline has been denied. However, the company will reapply for a permit and hopes to start up pipeline service as soon as 2014.


TransCanada said late Wednesday that it had received the US Department of State's decision that the presidential permit for its proposed Keystone XL pipeline was denied.

However, the company does plan to reapply for a permit and potentially start up pipeline service as soon as 2014.

"This outcome is one of the scenarios we anticipated,” said Russ Girling, TransCanada's CEO. “While we are disappointed, TransCanada remains fully committed to the construction of Keystone XL.

“Plans are already underway on a number of fronts to largely maintain the construction schedule of the project,” Girling continued.

“We will re-apply for a presidential permit and expect a new application would be processed in an expedited manner to allow for an in-service date of late 2014.”

TransCanada said it expects that consideration of a renewed application will make use of the exhaustive record compiled over the past three-plus years.

"Until this pipeline is constructed, the US will continue to import millions of barrels of conflict oil from the Middle East and Venezuela and other foreign countries who do not share democratic values Canadians and Americans are privileged to have," added Girling.

"Thousands of jobs continue to hang in the balance if this project does not go forward. This project is too important to the US economy, the Canadian economy and the national interest of the United States for it not to proceed."

TransCanada said it will continue to work collaboratively with Nebraska's Department of Environmental Quality on determining the safest route for Keystone XL that avoids the Sand Hills region.

This process is expected to be complete in September or October of this year, TransCanada said.

TramsCanada has contracts with over 50 suppliers across the US, it said, with manufacturing locations for Keystone XL equipment including Texas, Missouri, Pennsylvania, Michigan, Oklahoma, South Carolina, Indiana, Georgia, Maryland, New York, Louisiana, Minnesota, Ohio, Arkansas, Kansas, California and Pennsylvania.

Girling said TransCanada continues to believe in Keystone XL due to the overwhelming support the project has received from American and Canadian producers and US refiners who signed 17-to-18 year contracts to ship over 800,000 bpd to meet domestic demand.

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