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
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
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
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.