Keystone XL Oil Pipeline to Face Another Environmental Review

(Bloomberg) -- TransCanada Corp.’s long-delayed Keystone XL oil pipeline will face another round of environmental scrutiny, all but dashing company plans to begin construction in February.

The U.S. State Department indicated it’s going to undertake a new review of the $8 billion project in a filing on Friday. The analysis, formally known as a supplemental environmental impact statement, will look at potential effects on greenhouse gas emissions, crude spills, cultural resources and the overall market -- issues a federal judge cited when he declared the original assessment inadequate earlier this month.

TransCanada did not immediately respond to a request for comment on the new review.

The 1,200-mile (1,900-kilometer) pipeline, which would help carry 830,000 barrels of crude a day from Alberta’s oil sands to U.S. Gulf Coast refiners, has faced legal holdups amid staunch opposition from environmental groups and landowners.

To contact the reporter on this story: Rachel Adams-Heard in Houston at To contact the editors responsible for this story: Simon Casey at Joe Carroll, Christine Buurma.


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