Some good news on the Keystone XL pipeline front: TransCanada has announced that it is moving forward toward construction of the Keystone XL (KXL) pipeline.
As you may recall, in November Nebraska regulators approved a pipeline route for KXL through their state. However, the route that was approved differed from TransCanada’s preferred route for KXL, complicating the future of the project.
The Latest News: This week, TransCanada announced that interest in using the pipeline is strong. The company stated that they have received 20-year commitments to deliver approximately 500,000 barrels of Canadian and U.S. oil – enough interest to make the business justification to continue to move forward with the project.
In addition, TransCanada also revealed that they are now proceeding with pre-construction plans and activities to build KXL on the alternate-approved route. The company said that it is “continuing outreach in the communities where the pipeline will be constructed and is working collaboratively with landowners in an open and transparent way to obtain the necessary easements for the approved route.”
Why It Matters:
The Keystone XL pipeline will allow more Canadian and American oil to move more easily to U.S. refineries.
It will bring important job growth and tax revenue to communities along the route, and create good construction and manufacturing jobs in the short term. KXL will help fuel the American economy for decades to come.
Pipelines are the safest, most efficient way to move large amounts of oil with the least risk.
Next Steps: Although the KXL project and route have been approved at state and federal levels, there are additional construction permits that the company has to obtain. TransCanada indicates that construction preparations will increase as the permitting process advances throughout 2018, with primary construction expected to begin in 2019. In addition, TransCanada will continue to market the pipeline and work to secure additional long-term contracts to transport oil to U.S. refiners.
For almost ten years we have looked forward to KXL being built. Today, America is one-step closer to realizing the many benefits we’ve been denied during the unfair delay of the project.