🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

TransCanada has not yet broached Keystone XL with shippers: CEO

Published 01/26/2017, 04:14 AM
© Reuters. A depot used to store pipes for Transcanada Corp's planned Keystone XL oil pipeline is seen in Gascoyne
TRP
-

By Jim Morris

WHISTLER, British Columbia (Reuters) - TransCanada Corp has yet to discuss the Keystone XL oil pipeline with shippers and is not certain if all were still in support of it, the company's CEO said on Wednesday in his first public comments since President Donald Trump revived the project.

The new U.S. president signed an order on Tuesday that allowed TransCanada (TO:TRP) to reapply for a permit for Keystone XL, after it was rejected in 2015 by then-President Barack Obama on environmental concerns.

TransCanada Chief Executive Russ Girling said the firm was "diligently" preparing its application for the 1,179-mile (1,900 km) pipeline from Hardisty, Alberta, across the U.S. border to Steele City, Nebraska.

Girling said he believes the project remains attractive for shippers, given that it will supply the popular Gulf Coast market.

"But we haven't engaged in direct conversation on that issue," he said at an investors conference. "This wasn't in our planning horizon in the middle of last year, so we've only just re-engaged with our shippers again."

Analysts and traders said the C$8 billion ($6.1 billion) pipeline was far from being a certainty.

Since it has been proposed nearly a decade ago, TransCanada has lost some initial support from shippers during its arduous approval process, said a Canadian crude trader familiar with the pipeline contract who declined to be identified due to a lack of authorization to speak to the media.

The pipeline has faced fierce opposition over environmental concerns and still needs to get approval from the state of Nebraska.

TransCanada late Wednesday did not immediately respond to a request for comment about the shippers' commitment to the project.

If operational, Keystone XL would bring more than 800,000 barrels per day of heavy crude from Canada, which holds the world's third-largest crude reserves but lacks the infrastructure to move it easily.

© Reuters. A depot used to store pipes for Transcanada Corp's planned Keystone XL oil pipeline is seen in Gascoyne

The project has received regulatory approval and government backing in Canada.

(Writing and additional reporting by Ethan Lou in Calgary, Alberta, and Catherine Ngai in New York; Editing by Sandra Maler and Randy Fabi)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.