RTE 1:00 Jenkins pipeline link from the US will link up to Canada, says Prime Minister Justin Trudeau.
Keystone Pipeline, the $8.8 billion project that will link Alberta with the US, will be built by TransCanada, which also owns Keystone XL, a key component of President Donald Trump’s environmental policy.
Prime Minister Justin Trudeau has welcomed the decision, saying the new route will help Canadian jobs.
“It’s an incredible day for the world,” Mr Trudeau said in Calgary.
“The Keystone XL Pipeline is a crucial part of the US economy and a vital link to our international trading partners, particularly in light of Donald Trump ‘s rejection of the pipeline.”
TransCanada will provide construction jobs to Canadian workers, Mr Trudeau added.
“It’s not just a jobs guarantee.
It’s an opportunity to invest in Canadian communities.”
The new pipeline will carry up to 525,000 barrels per day of Canadian crude oil to refineries in Texas.
It will also deliver oil to Canada’s eastern Gulf Coast.
TransCanada said it was working with a number of local partners, including the Alberta government, to finalise a route for the Keystone pipeline, and to finalize the construction timeline.
“We are proud to have been chosen as the finalist for the $9 billion Keystone XL project, and look forward to meeting with the Prime Minister to finalising a new, high-priority route for this project,” TransCanada said in a statement.
TransLink, the federal transportation agency, said the company had been selected to carry out construction on the Keystone XL pipeline in a partnership with the Department of Transportation.
“TransCanada is pleased to be the final winner of the $13 billion Keystone Pipeline,” TransLink Chief Executive Officer David Hirsch said.
“The project is expected to be completed in the first quarter of 2020, with completion expected to occur in late 2021.”
Keystone XL is one of the most controversial projects in recent US history, after President Trump pulled the US out of the Paris climate accord and promised to reverse the United States’ environmental legacy.
The US government also threatened to veto the Keystone project, which the Trump administration said would be too costly and complex to complete, and would hurt the US oil industry.
“America’s energy independence is our national security, and it’s imperative that our energy infrastructure remains secure and viable for the long term,” Mr Trump said in February.