Canada makes plans in case Keystone not approved – ExxonMobil CEO

13 March 2013 21:16  [Source: ICIS news]

HOUSTON (ICIS)--As US president Barack Obama continues to contemplate a decision on the proposed Keystone XL pipeline, Canadian officials are not sitting idly by, ExxonMobil CEO Rex Tillerson said on Wednesday.

The pipeline, a project of TransCanada, would cross the border between the US and Canada, transporting oil from Hardisty, Alberta, and the Bakken shale formation in the US to Nebraska and eventually to refineries along the US Gulf Coast.

In January 2012, Obama rejected a permit for the pipeline, saying the deadline did not allow for enough time to fully weigh the project’s impact.

Then, on 22 January 2013, Nebraska’s governor, Dave Heineman, announced the approval of a revised route for the pipeline. Approval from Nebraska was the main obstacle preventing the construction of the project, as the governor had not previously supported the pipeline plan through his state.

Now the fate of the pipeline again lies with Obama, who is expected to decide on it by mid-year.

But Tillerson intimated on Wednesday during ExxonMobil’s annual analysts day that Canadians have been formulating other plans in case the US does not approve the project.

“The Canadian government is not going to sit still, either,” he said. “They are going to want to deal with this issue, too. All of those solutions aren’t necessarily south, and I think we all should just keep that in mind.”

Canada has been exploring building a pipeline from the Alberta tar sands to British Columbia on its west coast. Doing so would give the country much easier capabilities to export to crude-thirsty Asian countries such as China.

At present, about 99% of Canada’s crude oil exports go to the US.

By: Jeremy Pafford
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index