Another Keystone XL Setback: Environmental Study Ordered

January 2019

A federal court order blocked a Trump administration permit for the construction of the Keystone XL pipeline, pending an environmental review. However, the issuing judge later said some pre-construction work can resume.

The pipeline would begin in Alberta and shuttle as much as 830,000 bpd of crude through a half dozen states to terminals on the Gulf Coast.

U.S. District Judge Brian Morris initially put on hold the $8 billion project, ruling that the potential impact had not been considered as required by federal law.

In reaction, Andrew Black, president and CEO of the Association of Oil Pipe Lines (AOPL) said, “Every review of Keystone XL, including those by the Obama administration, has found pipelines are the safest and most environmentally protective way to move the energy we need, and I have no doubt further review will find the same.”

TransCanada company is evaluating joint ventures and asset sales, among other options, to finance its construction and has not made a final investment decision.