TransCanada Corporation, saying it was “disappointed” by the decision on Wednesday to deny the Presidential Permit for Keystone XL (, also said it remains fully committed to the construction of the pipeline.
Plans are already underway on a number of fronts to largely maintain the construction schedule of the project. We will re-apply for a Presidential Permit and expect a new application would be processed in an expedited manner to allow for an in-service date of late 2014.—Russ Girling, TransCanada’s president and CEO
TransCanada expects that consideration of a renewed application will make use of the record compiled over the past three plus years.
TransCanada said it will continue to work collaboratively with Nebraska’s Department of Environmental Quality on determining the safest route for Keystone XL that avoids the Sandhills. This process is expected to be complete in September or October of this year.
Girling said TransCanada continues to believe in Keystone XL due to the support the project has received from American and Canadian producers and US refiners who signed 17- to 18-year contracts to ship more than 600,000 barrels of oil per day.
On the New York Stock Exchange, TransCanada shares dropped briefly on Wednesday after the news of the denied permit to below $40/share from their opening of $41.70, but recovered to close the day at $41.41, down 0.79%.
Canada Government reaction. Separately, Joe Oliver, Canada’s Minister of Natural Resources issued a statement on the Keystone XL Pipeline decision in the US.
...it is clear that the process is not yet over and we are hopeful that this project will be approved in the future based on its merits. Canada and the United States enjoy the single most important energy relationship in the world. We will continue to work with the US to further strengthen energy security for both our nations.
Meanwhile, our Government is moving ahead on creating jobs and economic prosperity for all Canadians. The responsible development of the enormous resources provided by our oil sands is expected to create hundreds of thousands of jobs spread across the country, generating significant economic benefits. We cannot understate the fact that these benefits fund critical services for Canadians, including health care and education.
Ninety-nine percent of our oil exports currently flow to the United States. [The] decision by the Obama Administration underlines the importance of diversifying and expanding our markets, including the growing Asian market, to help ensure the financial security of Canadians and families for decades to come.—Minister Oliver