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U.S. Keystone Decision May Delay TransCanada Six Months

TransCanada Corp.’s timeline for the Keystone XL pipeline may be pushed back at least six months if the Obama administration doesn’t issue final approval by the end of June, extending lower Canadian crude prices that threaten oil-sands growth.

TransCanada expects a decision by mid-year to complete its pipeline by early 2015. If a decision is pushed past September, the company faces choosing between spending more or delaying startup until mid-2015, Alex Pourbaix, TransCanada’s president of energy and oil pipelines, said today in an interview at the IHS CERAWeek conference in Houston. Some analysts predict a longer review of the conduit, which would transport 830,000 barrels a day of oil-sands crude to the Gulf Coast.