TransCanada has announced its plans to withdraw a route-approval application for its proposed $8bn Keystone XL pipeline which is pending before the Nebraska Public Service Commission.
The company’s latest decision comes following rejection by the Obama administration for the project earlier in November.
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At that time the company said that it will review all of its options which include filing a new application to receive a Presidential permit for a cross border crude oil pipeline from Canada to the US.
In October, TransCanada submitted an application with Nebraska’s Public Service Commission, but request for state approval was overshadowed by the decision taken by federal government against the pipeline project.
Political advocacy group Bold Nebraska said that Obama’s rejection of the fossil fuel project marks a victory for farmers, ranchers, Tribal Nations as well as the unlikely alliance that formed to fight the six-year battle.
The President said that the pipeline will not make a meaningful long-term contribution to the economy and would not lower gas prices for consumers in the US.
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By GlobalDataIn 2012, Obama had rejected the company’s application amid protests from various environmentalists about the pipeline’s impact on environmentally sensitive Sand Hills region in Nebraska.
If built, the Keystone XL pipeline is expected to carry 830,000 barrels of oil per day from Canada and North Dakota to Gulf Coast refineries.
Expected to create over 40,000 jobs, the Keystone project was commissioned in 2010 and the pipeline was planned to connect the Western Canadian Sedimentary Basin in Alberta to refineries in the US.
Image: Keystone 30in (760mm) pipeline (phase 1) near Swanton in Nebraska (2009). Photo: courtesy of shannonpatrick17
