Obama vetoes Keystone XL oil pipeline bill

US President Barack Obama has vetoed a bill to approve the Keystone XL oil pipeline project.

The US House of Representatives has recently passed S.1, the Keystone XL Pipeline Approval Act, on a 270-152 vote.

The 1,897km crude oil pipeline was proposed to start in Hardisty, Alberta, and extend south to Steele City, Nebraska.

It was planned to carry about 830,000 b/d of Canadian and Bakken crude to the US Gulf Coast.

Obama said: "I am returning here with without my approval S. 1, the ‘Keystone XL Pipeline Approval Act.’

Through this bill, the United States Congress attempts to circumvent longstanding and proven processes for determining whether or not building and operating a cross-border pipeline serves the national interest."

TransCanada said it remains fully committed to Keystone XL despite the veto of bipartisan legislation in support of the project.

The company said it will continue to work with the US Department of State and other federal agencies to address any concerns with respect to Keystone XL, including the issues raised by the Environmental Protection Agency.

TransCanada president & CEO Russ Girling said: "Without Keystone XL, U.S. refineries are forced to use other methods of transportation to get the oil they need for creating products we all rely on every day. This means higher GHG emissions and relying on methods of transportation that are not as safe or as efficient as pipelines."

TransCanada has already invested $3bn on the project and the total cost is expected to cross $10bn if it is constructed.

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Image: US President Barack Obama. Photo: Courtesy of Pete Souza.