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TransCanada Reaffirms Commitment to Building the Keystone XL Pipeline Despite No Advancement in Legal Proceedings

TransCanada announced that it has secured the commercial support it requires to move the Keystone XL pipeline’s plans forward.

The multi-billion dollar company announced on Thursday, January 18 that it managed to secure commitments to ship 500,000 barrels of crude oil per day through the Keystone XL pipeline, just over 60 percent of its 830,000 barrel-per-day capacity.

According to Patrick DeRochie, the Climate & Energy Program Manager at Environmental Defence which opposes the pipeline’s construction, it’s uncommon for a project like this to move forward without a commitment to use at least 80 percent of its capacity. At the current count, the Keystone XL pipeline is about 166,000 barrels per day shy of that mark.

“I don’t believe this pipeline will ever be built on the Mainline Alternative Route,” said attorney Brian Jorde. “With less than 60% capacity commitments after this many years it appears clear no intelligent shippers would commit to a project in such doubt. At the end of the day the Nebraska Court’s not TransCanada will decide what happens in Nebraska.”

On top of the logistical issues TransCanada faces securing enough commitment to potentially use its pipeline, the company still needs to navigate the ongoing legal battles in Nebraska.

Landowners, represented by the Domina Law Firm, continue to stand strong against the foreign company’s attempt to seize their land through eminent domain. Depending on what the judges handling this case decide in the coming months, TransCanada may be required to submit a new permit application to build the pipeline, which would lead to a review process that could take as much as a year to complete.

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