TORONTO (AP) — The company behind the controversial Keystone XL pipeline from Canada to the U.S Gulf Coast has asked the U.S. State Department to pause its review of the project.
TransCanada said Monday a suspension would be appropriate while it works with Nebraska authorities for approval of its preferred route through the state. The move comes before the Obama administration was widely expected to reject it.
Historically low oil prices have also undercut the financial logic of the project.
For seven years, the fate of the 1,179-mile (1,900 kilometer) long pipeline has languished amid debates over climate change, the intensive process of extracting Alberta’s oil and U.S. energy security
The pipeline has long been a flashpoint in the U.S. debate over climate change. Critics oppose the concept of tapping the Alberta oil sands, saying it requires huge amounts of energy and water, increases greenhouse gas emissions.
