TransCanada has secured a Presidential Permit from the US Department of State to build the Keystone XL Pipeline.
The company also stated that following the approval, TransCanada has discontinued its claim under Chapter 11 of the North American Free Trade Agreement (NAFTA) and will withdraw from its ongoing US constitutional challenge.
TransCanada president and chief executive officer Russ Girling said: “This is a significant milestone for the Keystone XL project.
“We greatly appreciate President Trump's Administration for reviewing and approving this important initiative and we look forward to working with them as we continue to invest in and strengthen North America's energy infrastructure.”
Connecting the Canadian oil sand regions with the US refiners, the Keystone XL pipeline will create thousands of jobs, reported CNBC.
TransCanada estimates that Keystone XL will obtain an investment of more than $15bn in liquid and natural gas projects, generating significant benefits for the US economy.
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By GlobalDataThe company also stated its intention to continue its discussions with its stakeholders and property owners in Nebraska, Montana and South Dakota to receive necessary permits and approvals to commence the construction of this project.
In 2015, this 1,897km pipeline project was blocked by former President Barack Obama.
After completion, the pipeline is expected to transport around 800,000 barrels of oil equivalent daily to the refineries and ports in US from the oil sand fields situated at Alberta in Canada.
Image: Pipes for the Keystone Pipeline. Photo: courtesy of shannonpatrick17 via Wikipedia.
