TransCanada Still Committed to Keystone XL

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CBJ — TransCanada says it remains committed to the $10-billion Keystone XL crude pipeline project despite a ruling by a Montana state judge that has declared it must pass further environmental reviews.

Environmentalists and Native American groups had sued to stop the development of the pipeline, citing property rights and potential oil spills as primary reasons for their opposition.

A shortage of export pipeline space to carry away growing oil production in Alberta has been blamed for recent steep discounts in prices for Canadian oil as compared to New York-traded benchmark oil.

Analysts say as much as 110,000 barrels a day of crude oil is currently being left in the ground in Western Canada rather than being produced and sold at unprofitable prices.

The 1,900-kilometre pipeline would carry as much as 830,000 barrels of crude per day from Hardisty, Alberta, to Steel City, Nebraska, and on through a half dozen states to refineries on the Gulf Coast.