Trump issues permit for Keystone XL pipeline

Trump issues permit for Keystone XL pipeline

US President Donald Trump has issued a permit to TransCanada (TSX:TRP) for the construction of the controversial Keystone XL pipeline, confirmed White House secretary Sean Spicer.

Previously rejected under the Obama administration, the Keystone XL pipeline will carry more than a fifth of Canadian oil exports from Alberta to Texas.

TransCanada first applied for a construction permit for the 1,897km pipeline in 2008, which would carry 800,000 barrels of crude a day from Alberta to Steele City, in Nebraska before joining an existing pipeline.

The Calgary-based firm’s president and chief executive Russ Girling said: “This is a significant milestone for the Keystone XL project.

“We greatly appreciate President Trump’s administration for reviewing and approving this important initiative, and we look forward to working with them as we continue to invest in and strengthen North America’s energy infrastructure.”

Following on from his backing of the hugely protested Dakota Access oil pipeline, Trump’s move is one of the first concrete measures taken to strengthen America’s energy infrastructure industry.

Trump’s proposed policies relating to the national energy sector have been met with opposition from environmentalists and advocates of alternative, renewable energy.