The alternative route imposed on TransCanada for the Keystone XL pipeline will likely add between $80 million and $160 million to the $8 billion project. Madville Times photo by Bret Clanton.
Keystone XL decision pending
TransCanada’s CEO Russ Girling says the Keystone XL pipeline is still feasible even though Nebraska regulators directed the company to use an alternative route.
The company has not yet made a final decision on the pipeline, but it is a hint that TransCanada is still considering the $8 billion, 1931-Km long pipeline which will transport oil sands crude to refineries in the Gulf of Mexico.
Girling says TransCanada’s evaluation of the project after the ruling by the regulators was mostly about its legality.
“We’re comfortable that they came to a decision that was within their jurisdiction and within the law,” CEO Russ Girling said while speaking at a Canadian Imperial Bank of Commerce conference in Whistler, BC. “That was what our primary concern was.”
According to Girling, the alternative route is not a major issue for the company, but there is an additional cost of between $80 million to $160 million associated with the pipeline’s new path. The imposed route adds five to 10 miles of pipe, a small addition to the project, according to Girling.
“The actual routing, construction and costs, those aren’t major issues,” he said.
TransCanada is focusing on acquiring land along the new route and obtaining other permits required.