NEW YORK TransCanada Corp. submitted
a new application to the U.S. government Friday to build its
controversial Keystone XL pipeline, a project that was denied
earlier this year due to environmental concerns.
The proposal entails the second
leg of a $7.6-billion plan that aims to convey oil from Canada
to Texas Gulf Coast. The Calgary, Alberta-based energy
company previously announced plans to first construct a portion
of the pipeline from Cushing, Okla., to the Gulf Coast of Texas
as a standalone effort, then reapply for a Canada-to-Nebraska
leg later (AMM, Feb. 29).
TransCanada added that it
intends to supplement the application with an alternative route
The first leg, the $2.3-billion
Gulf Coast Project, is expected to be in service by mid- to
In a statement Friday, the U.S.
State Department said it has received the application and is
reviewing the proposal based on the national interest, adding
that the decision will involve "consideration of many factors,
including energy security, health, environmental, cultural,
economic and foreign policy concerns."
The state of Nebraska will also
conduct its own review, which will take six to nine months, the
Keystone XL pipeline project will reduce the United
States dependence on foreign oil and support job growth
by putting thousands of Americans to work," TransCanada
president and chief executive officer Russ Girling said in a
In January, the Obama
administration rejected the project on concerns over the
proposed pipelines environmental impact on wetlands in
Nebraska. Critics called the move politically motivated.
If the application is approved,
TransCanada expects to begin construction in the first quarter
of 2013, with completion slated for late 2014 or early
TransCanada has already procured
some 820,000 tons of pipe for the project, most of it 36-inch
diameter X70 material.