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Judge Brian Morris of the Montana District, who ordered earlier this month to suspend work on the highly controversial Keystone XL crude oil pipeline, has now allowed TransCanada to conduct preliminary project-related activities, including the development of the project. engineering and planning, confirmation of oil shipment contracts and acquisition. land rights, equipment and permits, reports the Associated Press.
Earlier this month, Morris asked the US government to review and revise its valuation of Keystone XL, taking into account the evolution of the oil markets since 2014, the latest change in climate change and the presence of "cultural resources" along the path of the planet. pipeline to carry heavy oil from Alberta to US refineries. The 830,000 barrels per day pipeline will link the oil sands from Alberta to Montana and South Dakota, to Nebraska, where it would connect to the existing pipeline system leading to the Gulf Coast. Mexico.
As a result of the order, TransCanada asked the judge to allow him to perform some work at least while Washington was reviewing the badessment of his project. The request has now been accepted, reflecting TransCanada's determination to begin construction of the project early next year, despite continued opposition.
"A delay of one year in pipeline construction would cause significant harm to TransCanada, as well as to US workers and TransCanada customers, based on the timing of implementation. current project service, "said a senior TransCanada executive at a statement to the court quoted by the Associated Press. Such a delay would cost the company $ 949 million in lost revenue and delay the hiring of 6,600 people.
Keystone XL, if it is built, will provide some relief for Canadian oil sands producers, strangled by pipeline capacity shortages, which have seen the price of their crude oil plunge into unprecedented reductions relative to WTI.
By Irina Slav for Oilprice.com
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