US Denies TransCanada Request to Delay Pipeline Review

TransCanada Corp said on Thursday it has scrapped plans to build a port in Quebec and will have only one crude oil export terminal for its proposed Energy East pipeline, a possible setback for the controversial project. The company is planning C$38 billion in spending through 2019.

The pipeline is seen as a symbol in the battle against climate change.

Since its initial application, TransCanada’s $8 billion Keystone project has been under review for about 7 years.

TransCanada, based in Calgary, Canada, told the AP that it respects the USA decision.

A halt in the review would perhaps have delayed a decision on building the pipeline until after the USA presidential election in November 2016.

But the official reason sought for suspending State action is that the company seeks review of its route, again, from the Nebraska Public Service Commission. Its actions, if accepted, could have avoided a rejection of the pipeline from the Obama administration.

Tiernan Sittenfeld, with the League of Conservation Voters, said in a statement that the request to delay the review “is nothing more than another desperate and cynical attempt by TransCanada to build their dirty pipeline someday if they get a climate-denier in the White House in 2017”. But on Thursday it said it has chose to go ahead with only one export site, in New Brunswick.

Since it was proposed seven years ago, the pipeline has been the heart of a struggle between environmentalists opposed to oil sands development and defenders of fossil fuels.

The Keystone pipeline would carry U.S. Bakken crude and Canadian oil to US refineries, pushing out millions of barrels of foreign oil imported daily.

Asked about the strain Keystone had imposed on ties with the United States, by far Canada’s most important partner, he replied: “We don’t want it to be an irritant… we understand the Americans have to look at this very closely”.

“Today’s announcement demonstrates our dedication to listening and delivering a vital infrastructure project that will provide significant economic benefits to all provinces along the pipeline’s route”, said TransCanada CEO Russ Girling.

The bid by the company now looks like an unsuccessful move in a game of chess, said Martin Pelletier, managing director and portfolio manager at TriVest Wealth Counsel Ltd.in Calgary.