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A Decade of TransCanada’s Keystone XL Project

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The project

Pipeline construction delays, though common, have been particularly extended for some projects. TransCanada’s (TRP) Keystone XL project is one example. The project, first proposed in 2009, is yet to start construction.

The Keystone XL pipeline is set to transport oil from Alberta’s oil sands to Nebraska. After years of protests and roadblocks, the US Department of State issued a presidential permit authorizing the Keystone XL pipeline in March 2017.

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Last November, a US district court ruled that Keystone XL’s environmental assessment was inadequate. TransCanada, along with the US Department of Justice, appealed that ruling. TransCanada had requested to carry on preparation for the pipeline’s construction during environmental review.

On February 15, District Court Judge Brian Morris denied TransCanada’s request to set up camps for pipeline construction workers. The decision may further delay the pipeline’s construction.

TransCanada has secured commercial support for the project’s capacity, and the Nebraska Public Service Commission approved the Keystone XL project’s route in 2017. The approval was challenged, and TransCanada expects the Nebraska Supreme Court to reach a decision shortly regarding the challenge.

TransCanada stock has risen 24% this year, but has fallen 2% in the last year. The stock is trading 10% above its 50-day moving average and 7% above its 200-day moving average. Next, let’s look at Enbridge’s (ENB) Line 3 replacement project.

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