By REBECCA PENTY
TransCanada Corp. (TRP) doesnt expect to start building
its proposed $5.4 billion Keystone XL pipeline this year,
resulting in hundreds of job losses as construction contracts are wound
The company has pushed the timetable to start building the
northern leg of the project, intended to transport crude
from Albertas oil sands to Gulf Coast refiners, to 2015
after the Obama administration delayed a decision because of a
legal challenge in Nebraska. TransCanada is still targeting
startup of the line in 2016, Chief Executive Officer Russ
Girling said today.
There will be several hundred that will be impacted by
this decision, both employees and contractors, Girling
told reporters at the companys annual meeting in Calgary.
At this point in time, theres a very low
probability that we would have a decision in time to meet this
years summer construction period.
The State Department, which is leading an inter-agency review
of the pipeline proposal, had asked other agencies to file
comments by early this month. On April 18, it announced it
would extend that deadline because of a legal challenge to the
route through Nebraska. The Nebraska Supreme Court will weigh
an appeal of a state courts ruling that made the
lines path illegal.
TransCanada is considering whether to apply for approval of the
Nebraska route with the Public Service Commission as the
attorney generals appeal of the state courts ruling
proceeds, Girling said. The line continues to become more
expensive as the delays mount.
The costs are material, the CEO said. The company
will consider whether it should take legal action to recover
costs tied to a regulatory review that has extended beyond
2,000 days, when the normal process is 500 to 600 days, he