TransCanada Announces Construction Of Segment Of Keystone XL

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TransCanada Announces Construction Of Segment Of Keystone XL

Postby dorminWS » Tue, 28 Feb 2012 10:20:21

USA Today (2/28, Koch) reports that on Monday Calgary, AB-based TransCanada said it will begin building the Oklahoma-to-Texas segment of the proposed Keystone XL pipeline, a projected rejected by President Obama last month. TransCanada said this part of the project doesn't "need a presidential permit because it does not cross a US border." Estimates say it will cost around $2.3 billion and be finished in 2013.
Bloomberg News (2/28, Lee, Polson) reports that in an interview Monday, TransCanada CEO Ross Girling said, "We remain committed to building this overall project in a timely and efficient manner and to meet demand of shippers," who he says "haven't wavered from Keystone." This stand-alone Cushing segment of the pipeline is expected to "help relieve oversupplies that have accumulated in the US Midwest because of a lack of pipeline capacity to carry the oil to refineries on the coast."
Reuters (2/28, Subscription Publication) reports that on Monday TransCanada added that the Cushing segment of the Keystone XL pipeline would create about 4,000 new US jobs upon completion, rather than the 20,000 jobs that the full pipeline project was said to be creating. TransCanada's pipeline division head Alex Porubaix said Monday the company thinks it can have a new route for the northern section of the pipeline agreed upon with Nebraska government officials by October or November 2012, at which point it could reapply with the State Department for a permit on the full pipeline project.
In a front-page story, USA Today (2/28, A1, Koch) reports, "The initial 1,700-mile pipeline, intended to carry a heavy crude known as tar sands from Alberta across seven US states, has become a political issue. Citing rising gas prices and the need to create US jobs, Republicans have criticized Obama for denying a permit last month and siding with environmentalists who say the crude's development would exacerbate climate change." According to USA Today, the President "said he denied a permit, because a GOP-imposed, 60-day deadline did not give him enough time to decide on the project given the uncertainty over its route through Nebraska."
McClatchy (2/28, Clark, Schoof) reports, "With President Barack Obama facing fire from Republicans over the rising cost of gasoline, the White House moved quickly Monday to trumpet a Canadian company's decision to build a section of the controversial Keystone XL pipeline...after Obama blocked a longer path last month." White House press secretary Jay Carney "hailed TransCanada's announcement and used it to counter Republican criticism that the administration has stifled oil and gas production. He said that the Oklahoma to Texas section of the pipeline would 'help address the bottleneck of oil in Cushing that has resulted in large part from increased domestic oil production, currently at an eight-year high.'"
The AP (2/28, Daly) also reports that the White House "welcomed" the "plan to build an oil pipeline from Oklahoma to Texas after President Barack Obama blocked the larger Keystone XL pipeline from Canada." The AP notes that "the new proposal by Calgary-based TransCanada does not require presidential approval because it does not cross a US border. ... The Obama administration had suggested development of an Oklahoma-to-Texas line to alleviate an oil bottleneck at a Cushing, Oklahoma, storage hub."
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