(MENAFN- ProactiveInvestors) TransCanada (TSE:TRP) the country’s second-biggest pipeline operator rebuffed the U.S. Environmental Protection Agency’s conclusion that its Keystone XL pipeline would help increase the rate of oil sands production even at lower oil prices and raise greenhouse gas emissions.
In a letter to the State Department released today chief executive officer Russ Girling said the EPA’s conclusion isn’t supported by the environmental review conducted for the proposed $8 billion project.
“TransCanada disagrees with any suggestion that the Department of State has not fully and completely assessed the environmental impacts of Keystone XL” Girling said. “We also reject the EPA’s inference that at lower oil prices Keystone XL will increase the rate of oil sands production and greenhouse gas emissions.”
The U.S. House of Representatives today is scheduled to vote on legislation that would approve the pipeline. President Barack Obama has vowed to veto the bill if it passes. White House officials said the legislation would circumvent the review now under way in the State Department.
TransCanada would help the State Department in examining the emissions-related issues raised by the EPA if further review was required Girling said.
The EPA in a February 2 letter to the department responding to a 2014 environmental analysis said falling oil prices may make Keystone’s impact on the climate greater than an earlier analysis suggested.
The State Department's environmental review of Keystone XL in January 2014 found that the pipeline would not affect the rate of oil sands development or significantly raise emissions because rail cars would still carry oil to U.S. markets.
Transcanada has been awaiting a decision on Keystone XL for more than six years. The pipeline will ship 830000 barrels per day of crude mostly from Alberta's oil sands to refineries and ports on the Gulf Coast.
TransCanada rose 0.9 percent to C$58.57 at 1:47 p.m. in Toronto expanding gains over the past year to 20 percent.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.