US report reveals several issues with Keystone pipeline

WASHINGTON, Aug.23 (Reuters) – A U.S. government watchdog has discovered multiple issues with the construction, manufacture and design of the Keystone pipeline, validating President Joe Biden’s decision to revoke the license for a Keystone XL extension , said leaders of several House Democratic committees. On Monday.

Lawmakers requested the Government Accountability Office report in November 2019 after more than 11,000 barrels of oil leaked from the pipeline system in two versions in less than two years.

“GAO has found that preventable construction issues contribute to current Keystone pipeline spills more frequently than industry-wide trends,” they said in a statement.

Keystone’s four largest spills were “caused by issues with the original design, pipe fabrication or pipeline construction,” according to the GAO report.

Biden canceled the Keystone XL license on the first day of his tenure on Jan. 20, dealing a fatal blow to a project that would have transported 830,000 barrels per day of heavy oil sands crude from Alberta to Nebraska. L1N2JX1D8

“TC Energy’s record among its peers is one of the worst in terms of volume of oil spilled per mile transported,” a statement from lawmakers said. Lawmakers included Representative Frank Pallone, Chairman of the Energy and Trade Committee.

TC Energy Corp (TRP.TO) officially canceled the $ 9 billion Keystone XL in June. It filed a notice of intent in July to initiate a claim under the North American Free Trade Agreement and is seeking more than $ 15 billion in damages from the US government.

The company said in response to the report that it had “no high-impact incidents in 18 months” after taking steps to strengthen security and prevent incidents.

Opponents of the pipeline want to slow the flow of Canadian oil to the United States. But supporters of the pipeline say it will be shipped anyway, and the oil sent by rail has caused many fiery accidents.

Biden “was clearly right to question this operator’s ability to build a safe and resilient pipeline, and we support his decision to put the health and environment of Americans above the interests of industry,” said American representatives.

Reporting by Doina Chiacu and Timothy Gardner; Editing by Barbara Lewis, Dan Grebler and David Gregorio

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