CALGARY — The Canadian proponent of the $10-billion Keystone XL crude pipeline says it remains committed to the oft-delayed project despite a Montana judge’s ruling that it must pass a further environmental review.
TransCanada Corp. spokesman Terry Cunha says the company has received the judge’s ruling and is reviewing it.
U.S. District Judge Brian Morris put the project on hold, ruling that the potential impact had not been considered as required by federal law. Environmentalists and Native American groups had sued to stop the project, citing property rights and potential oil spills.
The federal court order blocks a Trump administration permit for the construction of the pipeline. Morris was appointed by President Barack Obama.
TransCanada shares on the Toronto Stock Exchange fell by as much as 2.75 per cent in early trading on Friday.
A shortage of export pipeline space to carry away growing oil production in Alberta has been blamed for recent steep discounts in prices for Canadian heavy crude as compared to New York-traded benchmark oil.
The 1,897-kilometre pipeline would carry as much as 830,000 barrels of crude per day from Hardisty, Alta., to Steel City, Neb., and on through a half dozen states to refineries on the Gulf Coast.
The Canadian Press