Nebraska’s top politicians have thrown their support behind TransCanada Corp. ’s Keystone XL pipeline, and are urging the U.S. federal government to “expedite” its approval.
Nebraska’s opposition was cited by the U.S. State Department last week as the reason for delaying a decision on the $7-billion (U.S.), 2,700-kilometre pipeline, which would open crucial new markets on the U.S. Gulf Coast to oil sands crude.
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At a news conference on Tuesday, Governor Dave Heineman threw his support behind an agreement reached between TransCanada and key Nebraska legislators to reroute the pipeline around the environmentally sensitive Sand Hills region.
Mr. Heineman said state officials would work with TransCanada to “expedite” the changes to the route – which would shift the path of the pipeline by as much as 50 kilometres – and added he wants the Obama administration to move quickly in granting final approval.
“Our most important objective all along was to move the route,” he told a web-cast news conference from Lincoln.
“So if we can expedite the supplemental environmental impact assessment and get moving on the construction of the pipeline, we’re all for that,” he said.
“We got to do our part first and once they get it, I hope they will expedite it.”
The state’s two federal senators, Democrat Ben Nelson and Republican Mike Johanns, also came out in support of the Keystone project on Tuesday after opposing the route through the Sand Hills.
The Obama administration last week said it would hold off on making a decision on Keystone XL, with the delay stretching past the 2012 presidential election. It singled out Nebraska’s Sand Hills as a concern, and wanted TransCanada to consider redesigning its plan so the pipeline would avoid this environmentally sensitive region.
The State Department decision raised concerns in Ottawa about the security of access to U.S. markets, and Prime Minister Stephen Harper and his ministers said the delay underscored the need to open new markets in Asia.
But even if Keystone XL is back on track, Ottawa remains determined to expand the export market for Canadian oil and gas beyond the United States. Natural Resources Minister Joe Oliver – along with Mr. Harper and Finance Minister Jim Flaherty – said last week’s announcement that the State Department was delaying a final decision underscored the need to build oil and gas pipelines to the west coast.
“Diversification of our markets is fundamental,” Mr. Oliver said. “I really want Keystone to go ahead but it’s not going to change our focus on diversifying our markets. It’s an absolutely fundamental objective of our government – I’d call it an urgent objective.”
Mr. Oliver said he was more optimistic the project will receive final approval from Washington, but said it is unclear how long the additional review will take. TransCanada officials said Monday they expected to be able to complete a supplemental environmental impact statement within six to nine months, but an unnamed State Department official told The Wall Street Journal the full review would take 12 to 18 months.