TransCanada Explores Oil by Rail on Keystone Permit Wait
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TransCanada Corp. is considering ways to deliver Canadian crude oil by rail to the U.S. as customers of its proposed Keystone XL seek an alternative to the delayed pipeline, Chief Executive Officer Russ Girling said.
The pipeline company is exploring how to modify existing contracts with Keystone XL customers to allow for rail shipments as it awaits U.S. permits for the pipe, Girling said in an interview yesterday at Bloomberg headquarters in New York. A rail option, which may cost twice as much as sending the crude via Keystone, would be an inefficient way of transporting the oil, he said.