At the same shareholder meeting where he announced higher-than-expected quarterly profits, TransCanada Corporation President Russ Girling admitted that his company’s efforts to sign up shippers for the Keystone XL pipeline have been complicated by low oil prices and alternative export routes.
“A lot of water has gone under the bridge over the last seven or eight years since we’ve proposed that project,” he said. “While producers are still supportive,” Reuters adds, “they have less money in the current environment.”
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Girling said the US$7-billion price tag attached to the project may be driven down by reduced industry activity due to the oil price crash, and by corporate tax cuts proposed by the Trump White House. “He said that reduction might free up cash for the company to pursue new projects, but did not go into details,” Reuters notes.
TransCanada posted quarterly profit of C$3.39 billion, up 35.5% from last year.