TransCanada eyes shipping crude by rail amid Keystone XL delays, CEO says

|About: TransCanada Corporation (TRP)|By:, SA News Editor

TransCanada (TRP) is in talks with customers about shipping Canadian crude to the U.S. by rail as an alternative to its Keystone XL pipeline project that has been mired in political delays, CEO Russ Girling says in his first comments confirming growing speculation that the company might use more costly - and more dangerous - railway shipments as a stopgap alternative to the pipeline.

Girling says TRP is exploring shipping crude by rail from Hardisty in Canada, the main storage and pipeline hub, to Steele City, Neb., where it would flow into an existing pipeline to the Gulf refining hub.

"It's an irony that the adamant opposition of environmental organizations and others against oil sands-derived crude have actually created a phenomenal opportunity for rail to pick up the slack," says Morningstar analyst David McColl.