November 10, 2011

TransCanada Pipelines optimistic Keystone XL will be approved

The KeyStone XL pipeline, which is expected to create 20,000 construction jobs in the United States, is too important for the economies of both Canada and the United States to be rejected, TransCanada PipeLines Ltd. (TSX:TRP) stated in a press release Thursday.

The Calgary firm announced that an order from the U.S. State Department to find alternate routes in Nebraska could “have potential negative ramifications.”

Calgary-based TransCanada issued the release shortly after the State Department ordered the firm to find a new route for KeyStone XL, which is intended to carry crude from the oilsands to refineries in Texas.

“We remain confident Keystone XL will ultimately be approved,” TransCanada president Russ Girling stated in the release. “This project is too important to the U.S. economy, the Canadian economy and the national interest of the United States for it not to proceed.”

The environmental assessment process studied 14 different routes, eight of which would affect Nebraska, TransCanada stated.

“They included one potential alternative route in Nebraska that would have avoided the entire Sandhills region and Ogallala aquifer and six alternatives that would have reduced pipeline mileage crossing the Sandhills or the aquifer,” TransCanada stated. “TransCanada hopes this work will serve as a starting point for the additional review and help expedite the review process.”

Girling stated in the release that TransCanada “has worked with the State Department for the past three years to ensure Keystone XL would be the safest pipeline ever built” and described the project as “shovel-ready.”

“TransCanada is poised to put 20,000 Americans to work to construct the pipeline, pipe fitters, welders, mechanics, electricians, heavy equipment operators, the list goes on,” the firm stated.

DCN DIGITAL MEDIA

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