Trump Issues New Permit for Keystone XL Pipeline -- Update
30 March 2019 - 9:20AM
Dow Jones News
By Vipal Monga
President Trump removed a roadblock to construction of
TransCanada Corp.'s Keystone XL oil pipeline on Friday, issuing a
permit that effectively allows the much-delayed project to move
forward without further federal environmental review.
But the hotly contested pipeline expansion meant to carry oil
from Alberta to Nebraska still faces hurdles more than a decade
after it was first proposed, including a state-level challenge that
could complicate its completion.
Mr. Trump's new permit on Friday authorizing construction
sidesteps an order by a federal judge in Montana last year, which
blocked construction until completion of a supplemental
environmental review. That review was required in connection with
an earlier federal permit, which the new presidential permit
replaces.
TransCanada Chief Executive Russ Girling hailed Mr. Trump's move
Friday. "The Keystone XL pipeline has been studied more than any
other pipeline in history and the environmental reviews are clear
-- the project can be built and operated in an environmentally
sustainable and responsible way, " Mr. Girling said in a
statement.
A company spokesman declined to say whether construction would
proceed as planned later this year.
TransCanada had contested the court ruling calling for
additional environmental review and argued in an appeal earlier
this month that it could force the company to delay construction
until next year. The ninth circuit court of appeals upheld the
lower court ruling, however.
The pipeline company first applied for a permit to build
Keystone XL, an expansion of its existing Keystone pipeline, in
September 2008. But the project has faced setbacks amid opposition
from landowners and environmentalists. Keystone XL would begin in
Hardisty, Alberta, and extend south to Steele City, Neb., linking
to existing pipelines connecting to the refineries of the U.S. Gulf
Coast.
While Mr. Trump's action likely removes the threat of further
federal delays, the company is still awaiting a ruling by
Nebraska's state supreme court, which is deciding whether
regulators properly approved a new route for the pipeline in late
2017.
The president's permit comes as welcome news for Alberta's
embattled oil producers. Lack of pipeline capacity from the
landlocked oil sands pushed down the price of Canadian oil relative
to U.S. grades last year, prompting the provincial government to
force producers to cut production.
Meanwhile, Canadian producers haven't been able to capitalize on
the increased demand for its grade of heavy crude prompted by
sanctions on Venezuelan oil.
"We need all the market access we can get," said Chris Bloomer,
president of the Canadian Energy Pipeline Association. "Any forward
momentum is a positive for the industry."
--Maria Armental and Timothy Puko contributed to this
article.
(END) Dow Jones Newswires
March 29, 2019 18:05 ET (22:05 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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