TransCanada Delays Controversial Keystone XL Pipelinehttp://www.fool.com/investing/general/2013/04/29/transcanada-delays-controversial-keystone-xl-pipel.aspx Arjun Sreekumar
April 29, 2013
TransCanada (NYSE: TRP), the operator of the proposed Keystone XL pipeline, said it will be postponing the line's in-service date from late 2014 or early 2015 to the second half of 2015, as the regulatory process drags on longer than anticipated.
The ongoing delay in getting a U.S. presidential permit for the project could raise the pipeline's staggering $5.3 billion price tag even further. As of the end of March, TransCanada had already spent about $1.8 billion on the project.
If constructed, Keystone would transport up to 830,000 barrels per day of crude oil from Alberta's oil sands to Steele City, Neb. From Nebraska, the crude would make its way to Cushing, Okla., from where it would be moved south via Seaway, a major pipeline that runs from Cushing to refineries along the Gulf Coast and is operated jointly by Enbridge (NYSE: ENB) and Enterprise Products Partners (NYSE: EPD).
TransCanada's decision comes amid growing pressure from environmentalists, climate change campaigners, landowners, and others, who are urging lawmakers to reject the pipeline. They argue that allowing the pipeline to be built would lead to further development in Alberta's oil sands – a region that spews materially greater quantities of greenhouse gasses than conventional methods of oil production.
However, in its Draft Supplemental Environmental Impact Statement for the