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Nebraska court (US) approves route for Keystone XL oil pipeline project

A court in Nebraska (United States) has approved an alternative route for the 830,000 bbl/d Keystone XL oil pipeline project developed by Canadian energy infrastructure group TC Energy (previously TransCanada). The court supported the alternative route that was approved by the Public Service Commission (PSC) of Nebraska in November 2017 but was opposed by landowners, indigenous groups and environmental groups.

The Keystone XL crude oil pipeline would link the Alberta oil sands (Canada) through Steele City in Nebraska (US) to the Mexico Gulf coast refiners over a 1,897 km route. The project has been repeatedly delayed and received a presidential veto in 2015. However, the new administration approved the pipeline permit in March 2017. The project is still opposed by environmental groups, Native American tribes and some landowners. This ruling removes a hurdle for the project, which has been struggling for approval over the last 10 years but secured a Presidential Permit in late March 2019. In October 2019, a judge in Montana will hear a request from environmental groups to block the Presidential Permit.

TC Energy has not made its final investment decision on the project and its US$8bn estimated cost might need to be updated.