Donald Trump awards TransCanada a presidential permit to construct the controversial Keystone XL Pipeline

 
Courtney Goldsmith
Follow Courtney
Proposed Keystone XL Pipeline To Run From Canada To Gulf Of Mexico
Trump has promised to spend $1 trillion on infrastructure (Source: Getty)

Donald Trump has issued a presidential permit to TransCanada for the construction of the Keystone XL Pipeline, the North American energy company today announced.

"This is a significant milestone for the Keystone XL project," said Russ Girling, TransCanada's president and chief executive officer.

"We greatly appreciate President Trump's administration for reviewing and approving this important initiative and we look forward to working with them as we continue to invest in and strengthen North America's energy infrastructure," Girling added.

Former US President Barack Obama previously blocked the Keystone pipeline, arguing it wouldn't reduce fuel prices for US motorists and would contribute to global warming.

Read more: Why are UK stock markets falling now? A guide to the Trump trade

The multibillion-dollar pipeline is set to carry more than 800,000 barrels per day of heavy crude from Canada's oil sands in Alberta into Nebraska where it will link to an existing pipeline network and be taken to US refiners.

Trump signed an executive order to revive the Keystone and Dakota Access pipelines soon after taking office.

TransCanada will still need approval from state regulators, and the controversial pipeline could face legal challenges.

The energy firm has invested more than $15bn in liquids and natural gas projects across the US.

Read more: Keystone XL still faces obstacles even with Trump’s approval

Related articles