Thursday, June 28, 2012

Keystone XL’s first permit approved

The U.S. Army Corps of Engineers has granted TransCanada Corp one of three permits it needs to build the $2.3 billion southern section of the Keystone XL pipeline, a project President Barack Obama had pledged to move forward quickly.
TransCanada, which seeks to build the overall project in stages after Obama rejected the contentious first incarnation, said the approval covers wetland and water crossings in the Galveston, Texas, district.
The company needs two other permits from the agency’s Tulsa, Oklahoma and Fort Worth, Texas districts for the project, which it has rebranded the Gulf Coast project. Tulsa is expected to decide on the permit on Thursday when a 45 day period of consideration draws to a close, said Lavonna Davis, an Army Corps public affairs specialist.
The Fort Worth district has asked TransCanada for more information, so there is no estimate when the agency might decide on the permit, she said. “Their clock hasn’t started ticking, not until they get the full package of information.”
The southern section would initially carry 700,000 barrels a day of crude to Texas refineries from the glutted Cushing, Oklahoma, storage hub with the aims of helping to raise deeply discounted prices and providing the region more secure oil supplies. It could be expanded to 830,000 bpd.
TransCanada expects to start construction later this summer.

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