After Six Years, $8 Billion Keystone XL Awaits One Final Signature
TransCanada Moving Ahead with $6 Billion in Other Capital Projects in 2015
Project start-ups may be lower than usual in the revamped commodity market, but TransCanada’s (ticker: TRP) operations are on the upswing. The Calgary-based pipeline company is moving forward with a CA$46 billion capital program through 2020, installing midstream equipment of all shapes and sizes to a variety of awaiting clients. Nearly $4 billion of new projects were placed into operation in 2014 and another $6 billion is slotted for 2015, but the company’s largest potential project, the Keystone XL, is still on the starting blocks.
TransCanada reported its Q4’14 results on February 13, 2015 – just days after the company sent a letter to the United States Department of State criticizing its actions on the Keystone Pipeline. TRP management mentioned in the call how the majority of cross-border pipeline applications take about two years to complete, but the Keystone XL is approaching its seventh year without approval. The company has explored shipping-by-rail options in lieu of KXL, but remains committed to the $8 billion pipeline project.
In the conference call, Russ Girling, President and Chief Executive Officer of TransCanada, briefly addressed the Keystone situation. Parts of the transcript are included below.
“We continue to see strong bipartisan support for Keystone XL both in the Senate and the House. The American people also continue to support the pipeline with 30 polls since 2011 showing two-thirds in favor of the project. The final environmental impact statement that was issued last year by the Department State indicated the project would have a minimal impact in the environment. It would not increase GHG emissions. It would create jobs. It would have a positive impact on the economy, and it would enhance both energy and national security. We continue to believe the Keystone Pipeline is very much in the national interest in United States.
“And to be totally clear, TransCanada and its shippers remained 100% committed to building the Keystone XL Pipeline and we continue to believe it will be ultimately approved.”
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