The pipeline, designed to carry oil from Canada to refineries in the US, was rejected by US President Barack Obama in November 2016.

It would have increased the supply of oil from the oil sands in Alberta in Canada. President Obama said it was not in the "national interests" of the US. The pipeline's construction has been hotly disputed for seven years, with environmentalists saying it would do irreparable damage. The Canadian National Energy Board approved the Keystone XL pipeline in March 2010, but because it would have run across the US/Canada border, the project required a presidential permit before construction.

A Keystone pipeline already runs from Alberta to refineries in Illinois and Texas. The new pipeline would have followed a more direct route to Steele City in Nebraska. TransCanada made its intention clear in January to recover costs through arbitration. It is filing its claim for $15bn in damages under North American Free Trade Agreement (NAFTA) provisions. Supporters of the Keystone XL pipeline said it would create thousands of jobs during its construction period and help decrease America's dependence on oil from the Middle East. They also argued that more oil on the market would lead to lower fuel prices for consumers.

President Obama rejected those claims and said it would not create jobs in the long term.

Source: BBC News

Categories: Industry news

By: Atmos International
Date: 16 April 2019