TransCanada to make final decision on Keystone XL by December

Keystone XL

TransCanada is looking for a “significant” level of commitment from its shippers before it makes it final decision on building the Keystone XL pipeline. TransCanada photo.

Keystone XL approved by Trump in March

TransCanada says that by December it will make the final investment decision on the proposed Keystone XL pipeline, the controversial pipeline project that would carry Alberta oil sands crude to the Gulf of Mexico.

The December deadline announcement is the first statement by the Calgary-based company on the investment decision for the project since it was revived by President Trump in March.

In 2015, President Barack Obama rejected TransCanada’s application to build the 1,879 kilometre long pipeline.

Reuters reports Paul Miller, executive vice president and president of liquid pipeline at TransCanada, said in a conference call that the investment decision will be made based on shipper demand and a regulatory outcome from Nebraska.

“Our assessment of these factors will really drive our investment decision when we get into that November-December time frame,” he said.

Miller said that TransCanada has “good support” from its current shippers, but is now looking for new entrants and a “significant” level of commitment.  He did not offer precise figures.

On Thursday, TransCanada launched an open season for additional commitments for Keystone XL.

TransCanada released its second quarter financial report on Friday, showing net income attributable to shareholders was up to $881 million, or $1.01/share, compared to $365 million, or 52 cents per share one year ago.

On an adjusted basis, TransCanada earned 76 cents per share which beat analysts’ expectations of 69 cents per share, according to Thomson Reuters.

Revenue rose almost 17 per cent to $3.22 billion.

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