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Keystone XL faces new challenge: Customers are no longer interested

Jun. 29, 2017 11:16 AM ETTC Energy Corporation (TRP) Stock, TRP:CA StockTRPBy: Carl Surran, SA News Editor4 Comments
  • After spending $3B on pipes, land rights and lobbying and weathering years of protests, TransCanada (TRP -0.3%) is struggling to attract customers for the Keystone XL pipeline amid low crude prices and competing oil transportation options, WSJ reports.
  • CEO Russ Girling remains committed to completing Keystone XL and believes it will prove profitable in the long term, but it may be years before TRP recoups its investment in the pipeline, according to the report, citing people familiar with his thinking.
  • In a world awash in low-price oil, many refiners are said to be unwilling to commit to long-term deals for Canadian crude that no longer looks particularly attractive, and uncertainty about production growth from Canada’s oil sands has given producers pause about signing long-term agreements for space on a pipeline they may not need.
  • Furthermore, several companies are competing to build pipelines from Canada to the U.S., and some analysts doubt there will be enough demand for all of the projects.

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