Manufacturers have long supported the Keystone XL pipeline as a way to create jobs across the construction and manufacturing supply chain, enhance our nation’s energy security and create economic value.
After years of delay in the previous administration, President Donald Trump issued an executive order in 2017 putting the stalled Keystone XL pipeline project back in motion. Then, last November, the Nebraska Public Service Commission approved the plan, bringing construction of Keystone XL one step closer to reality.
On Thursday, TransCanada Corporation announced it has met another critical hurdle and secured enough customer interest to hopefully begin construction next year:
TransCanada Corporation has enough customer interest to go forward with the Keystone XL oil pipeline, if the company decides to build it.
The Calgary-based company now has “approximately 500,000 barrels per day of firm, 20-year commitments,” according to a statement on Thursday. The pipeline operator will continue to secure additional volumes.
While TransCanada has not yet officially green-lighted the project, the company announced that construction preparation has begun, with primary work potentially coming in 2019. The company is working collaboratively with landowners to obtain the necessary easements for the route.
Not only would the project boost America’s energy production and independence but also would generate millions in revenue for state and local economies. As TransCanada said in a statement:
The project is expected to generate tens of millions of dollars in local tax revenues, supporting first responders, schools and hospitals, as well as roads and other local infrastructure. Enhanced standards and utilization of the most advanced technology will help ensure Keystone XL will be built and operated to uphold our fundamental commitment to safety and the communities we serve.
When completed, the Keystone XL pipeline would ship more than 800,000 barrels of crude oil a day from Alberta to Nebraska, where it would then connect to TransCanada’s existing pipeline system that delivers crude to refiners and ports in the Gulf Coast.
Manufacturers applaud the news and look forward to the launch of construction for this critical pipeline. Strengthening and modernizing our nation’s energy infrastructure is simply the right thing to do—for working families, energy security, job creation and U.S. manufacturing’s future.
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