U.S. rejects TransCanada’s Keystone XL pipeline plan
Posted January 18, 2012 1:25 pm.
This article is more than 5 years old.
Trapped by an untenable Feb. 21 deadline imposed by Congress, the U.S. State Department is recommending President Barack Obama reject TransCanada Corp.’s proposed $7-billion Keystone XL pipeline project.
However, Keystone XL is likely more delayed than dead: the move announced Wednesday essentially allows the White House to take back control of the process of approving the controversial proposal.
Calgary-based TransCanada is expected to resubmit an amended plan, which would construct a massive pipe to transport northern Alberta bitumen south to Gulf Coast refineries in the United States.
The project met with massive opposition in Canada and the U.S. in part because the original route travelled through a key Nebraska aquifer.
Other critics take issue with so-called “dirty oil” from Alberta’s oilsands, while still more say Keystone XL embodies North America’s ongoing dependence on fossil fuel.
The Obama administration — trapped between a job-starved economy and a core constituency with strong environmental leanings — said last year it would not make a final decision on Keystone until after the 2012 election.
Foreign Affairs Minister John Baird says the controversy proves the need for Canada to diversify its energy markets.
Wednesday’s news comes amid public hearings in Canada into another controversial proposal, the Enbridge Northern Gateway pipeline project between Alberta and the B.C. coast aimed at California and overseas clients.
