Canada column for Sunday, May 25/14
THE CANADIAN REPORT
(c) By Jim Fox
TransCanada Corp. is determined to get its crude oil to the U.S. – even by rail for now – after another regulatory delay of its proposed Keystone XL pipeline project.
Company president Russ Girling expressed his frustration to policy-makers in New York and Washington after learning that the ongoing Nebraska court dispute over the pipeline route has caused the presidential approval process to be delayed indefinitely.
TransCanada will take interim measures to ship its oil “between now and when we can build a pipeline,” he said.
His main message in the U.S. was that TransCanada will proceed with shipping oil by rail instead of by pipeline to refineries in the southern United States.
The company already has oil-storage facilities in Hardisty, Alberta and Cushing, Okla., and is considering building new storage space in Steele City, Neb.
It’s not a cleaner or safer option but would move the oil to XL’s already completed southern portion, Girling said.
The initial objective is to ship up to half of the 830,000 barrels a day the pipeline is designed to carry.