US President Donald Trump’s administration has given the green light to the development of TransCanada‘s Keystone XL pipeline.
The approval reverses a decision by former President Barack Obama to reject the project. TransCanada now needs to secure financing, acquire local permits, and fend off likely legal challenges, before construction can start on the contentious pipeline.
The 830,000 bpd pipeline will link the Alberta oil sands to Nebraska in the USA over a 1,897 km (1,200 miles) route. The project cost is estimated at USD8 bn. The deal has been welcomed by the oil industry and jeered by environmentalists. The pipeline linking Canadian oil sands to US-based refiners was blocked by the Obama administration, claiming it would do little to reduce fuel prices and would contribute to greenhouse gas emissions.
“TransCanada will finally be allowed to complete this long-overdue project with efficiency and with speed,” said President Trump, who campaigned on a promise to approve the project and signed an executive order to advance the pipeline shortly after taking office.
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