Nebraska Approves Keystone XL Pipeline Project
Nebraska regulators approved a route for TransCanada’s Keystone XL pipeline project through the state on Monday, Reuters reports. The project is an 830K b/d pipeline which will serve as an extension of the existing 600K b/d Keystone system linking Alberta oil to US refineries, and is highly supported by US President Donald Trump. Companies have already begun preparations in anticipation of the new project, with Matrix Global Holdings investing in a facility of 6.2M barrels of storage at Cushing, Oklahoma.
The project was thrown into uncertainty, when TransCanada Corp shut down part of its existing Keystone oil pipeline system last Thursday after a 5K barrel leak in South Dakota, just four days before neighbouring Nebraska was set to decide whether to proceed with the extension. The closure caused a sharp drop in Canada’s crude benchmark Western Canadian Select price.
Nebraska’s approval was not for TransCanada’s preferred route, but for a reportedly more costly alternative which involves 5 miles of additional pipeline as well as a new pumping station and transmission lines. Nebraska has been the only state yet to approve the pipeline’s route.