Trump Revives TransCanada’s Keystone XL Pipeline
Trump signs executive orders
President Trump signed executive orders to advance key pipeline projects on January 24, 2017. He signed executive orders to revive TransCanada’s (TRP) Keystone XL pipeline and Energy Transfer Partners’ (ETP) Dakota Access pipeline projects. TransCanada’s Keystone XL pipeline project is a 1,179-mile crude oil pipeline. It starts in Hardisty, Alberta, and extends to Steele City, Nebraska.
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The above map shows the proposed path for the Keystone XL pipeline. The project wasn’t approved by President Obama in November 2015. Now, TransCanada intends to re-apply for the project’s approval. However, President Trump wants to “renegotiate some of the terms” of the project.
Why is the project opposed?
As the above map shows, the Keystone XL pipeline will carry oil from Alberta’s rich oil sands reserves to Nebraska. Extracting oil from oil sands is believed to result in five times more greenhouse gas emissions compared to conventional sources. Also, the process is believed to impact boreal forests. It requires much higher fresh water use compared to conventional oil extraction. Environmentalists fiercely oppose the project.
Leach Xpress and Rayne XPress
Both Energy Transfer Partners and TransCanada closed 3.5% higher on Tuesday. On January 19, 2017, TransCanada received approval from the Federal Energy Regulatory Commission for its Leach XPress and Rayne XPress projects. The combined $1.8 billion in investments will transport natural gas from the Marcellus and Utica production areas to Midwest and Gulf Coast markets.
President Trump’s stance on key issues impacting the midstream energy sector will likely benefit the sector in the coming years.