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Getting swept up in U.S. Presidential politics can’t be high on the list of any Canadian corporation, but TransCanada Corp. isn’t backing down from its plans to build the Keystone XL oil sands pipeline.
The Calgary-based company said Tuesday it’s gearing up to file for a new permit “in the near future,” is anticipating obtaining Presidential approval in the first quarter of 2013, expects it will take two years to build it and plans to start shipping 830,000 barrels of oil from the oil sands in Alberta to the U.S. Gulf Coast in 2015.
“We are into it to the tune of $2.4-billion, we have secured about 95% of the right of way, the pipe is all sitting on the ground and the pumps are all ready to be hooked up. For all intents and purposes we are ready to go,” president and CEO Russ Girling said in a conference call to discuss the company’s results for the fourth quarter.
What it won’t do is get involved in the U.S. election, which Mr. Girling feels is not his company’s business.
With the push back, TransCanada may be breaking new ground for the oil sands community in its dealings with its bitter opponents – U.S. environmental groups that are opposing pipeline permits as a way to choke growth:
It’s refusing to retreat.
It’s the course of least resistance chosen by the U.S. President last month, when he denied Keystone XL a permit rather than risk opposition from environmental organizations that make up part of his political base.
It’s the course usually taken by corporations, particularly in the oil industry, rather than face high profile attacks that could shake market confidence in their strategies.
Mr. Girling said TransCanada is a $50-billion corporation and the $7.6-billion Keystone XL is not too risky for the company to keep pursuing because it’s convinced it will ultimately be approved.
The company said fourth-quarter profit rose 39% to $375-million, compared with $269-million, in the same period a year ago. It boosted its dividend by 4.8%.
The U.S. administration has withheld approval of Keystone XL twice – the first time last November when it delayed a decision until after the 2012 presidential election and again last month, when Republican legislators tried to force the president to make a final decision on the line.
For the rest of this column, please go to the National Post website: http://business.financialpost.com/2012/02/14/transcanada-pushes-back-on-keystone-xl/?__lsa=4a14c8e4