TransCanada Confident of Clearing Keystone XL Hurdle
TransCanada Corp. (TRP) is confident it can overcome the latest obstacle to its Keystone XL oil pipeline, after a Nebraska judge ruled the project’s route illegal, setting up potentially costly delays.
“This is a solvable problem and we are undeterred,” TransCanada Chief Executive Officer Russ Girling said on an earnings conference call today. “We will work to minimize any potential impact on the project’s schedule.”
A judge ruled yesterday that Nebraska’s governor didn’t have authority to approve a revised route for the pipeline, a decision that may delay the project as long as year. TransCanada is awaiting a U.S. permit to build the northern leg of Keystone XL, a pipeline that would supply U.S. Gulf Coast refineries with crude from Alberta’s oil sands.
The $5.4 billion project can be built in two years once it receives all required approvals, the company said. Nebraska’s attorney general has filed a notice to appeal the state court’s decision.
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