Trump administration approves Keystone XL pipeline

Report Trump Administration Expected To Announce Approval Of Keystone XL Pipeline On Friday
Activists march to the State Department in protest of the Keystone XL pipeline
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07 April, 2017

Parts of the pipeline have already been built, and construction on the project will continue in several months, Russ Girling, president and CEO of TransCanada, said at the White House on Friday. Trump vowed that the pipeline would bring jobs, lower energy costs, and reduce America's reliance on foreign oil.

The company has a total of US$15 billion in investment in oil and natural gas "that will create thousands of well-paying jobs and generate substantial economic benefits across the USA".

Four days after his inauguration, Donald Trump signed an executive order aimed at reviewing the controversial Keystone XL and Dakota Access pipelines. Kinder Morgan is moving ahead with an expansion to its Trans Mountain oil pipeline system to Vancouver, a project that could be completed by December 2019. The State Department says that the pipeline will create up to three dozen permanent jobs, in addition to 3,900 construction jobs. Greenpeace said it would pressure banks to withhold financing for the multibillion dollar project, and others said they would fight the pipeline in court.

"The fight is far from over", he said, promising "widespread opposition in Canada and the US" to the company and the financial institutions that support the project.

Fred Jauss, partner at the worldwide law firm Dorsey and Whitney and a former attorney with the Federal Energy Regulatory Commission, said local permits would also be a challenge.

January 2012: President Obama formally rejected TransCanada's permit, blaming congressional Republicans for forcing his hand.

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The Nebraska Public Service Commission still has to approve the route through the state.

Some 830,000 daily barrels of raw synthetic and bituminous oil will flow along this 1,400-kilometer pipeline from the Canadian province of Alberto to the USA state of Nebraska, and from there the oil will transported to the coast of the Gulf of Mexico through existing lines. "It gives them tax revenues in which they can invest in schools, hospitals, roads, teachers, nurses - all of those things - build the fabric of communities and make those places better for those folks to live". In Canadian regulatory filings, consultants for TransCanada suggested that this will improve downstream profitability and raise prices in the American markets that rely on a captive supply of Canadian oil (primarily the American Midwest).

"It's a great day for jobs and energy independence", Trump said, calling the pipeline "incredible" and "the greatest technology known to man or woman".

The authorization was widely expected after Trump repeatedly pledged during his campaign to expedite the project. One protest is set for Friday evening at the White House.

President Trump announces the final approval of the Keystone XL pipeline.


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