Almost a full decade since first applying for a presidential permit, TransCanada looks set to finally receive go-ahead in the U.S. for its massive $8-billion Keystone XL pipeline.
But here’s the thing: U.S. approval, while a great leap forward for TransCanada, doesn’t guarantee the Keystone XL pipeline will ever be built.
New U.S. President Donald Trump was elected with the explicit promise to get the 830,000 barrel per day pipeline from Alberta to Nebraska built, under the conditions that the U.S. would receive a “big, big chunk of the profits, or even ownership rights” and it would be built with American steel; his administration has already flip-flopped on the latter pledge.
On January 24, 2017, Trump signed an executive order, inviting TransCanada to reapply for a presidential permit, which the company did two days later. It’s now in the hands of the State Department, which has to issue a verdict by the end of March.
Sounds like a slam dunk, right? Not so fast. Here are three key reasons why.