US President Donald Trump has issued a ‘Presidential permit’ to allow the existing TC Energy Keystone Pipeline to supply an additional 170,000 barrels per day (bpd) of Canadian crude oil into the US Midwest and Gulf Coast.
The additional supply of Canadian crude oil on the Keystone pipeline system will help address the increasing demand for the commodity from US refineries, Reuters reported, citing a statement from TC Energy’s chief executive Russ Girling.
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President Trump’s latest announcement comes in the wake of the Keystone Pipeline’s expansion project facing legal hurdles.
The Keystone XL pipeline project was stalled after US Supreme Court denied a permitting request earlier this month.
Construction of Keystone is currently underway and the pipeline is expected to become operational in 2023.
In March this year, TC Energy said it is set to proceed with the construction of the $8bn Keystone XL pipeline project after the Government of Alberta agreed to invest a $1.1bn equity investment in the project.
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By GlobalDataLast November, the TC Energy operations control centre reported the detection of a drop in pressure at the Keystone crude pipeline.
In February 2019, a US federal court refused TransCanada’s (now TC Energy) request to undertake pre-construction work on the Keystone XL pipeline.
The Keystone Pipeline System covers an area of 4,250km and transports more than 20% of western Canadian crude oil exports to the US Midwest and Gulf Coast refineries.
Meanwhile, in a separate development, US-based Semtech has announced that AIUT, a provider of Internet of Things (IoT)-based solutions in the oil and gas markets, has integrated Semtech’s LoRa devices and the LoRaWAN protocol into its suite of intelligent sensors for measuring the volume of LPG in tanks.
