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TransCanada reapplies to build XL permit

Keywords: Tags  TransCanada, Keystone XL pipeline, reapplication, U.S. State Dept., US energy independence, Russ Girling, energy market, steel pipe and tube X70 material

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 in Nebraska.

The first leg, the $2.3-billion Gulf Coast Project, is expected to be in service by mid- to late 2013.

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 department added.

"The multi-billion-dollar 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 statement.

In January, the Obama administration rejected the project on concerns over the proposed pipeline’s 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 2015.

TransCanada has already procured some 820,000 tons of pipe for the project, most of it 36-inch diameter X70 material.

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