Trans Canada Corp. Pulls the Plug on Keystone XL Oil Pipeline

TransCanada Corporation, the Canadian company that sought to build the Keystone XL pipeline, has withdrawn its request to the Obama administration to export shale oil from its western provinces to the United States, media reports said.

WASHINGTON (Sputnik) — US President Barack Obama was expected to refuse permission to bid the pipeline, delaying it approval at least until after the next presidential election.

The dramatic victory of Justin Trudeau and his Liberal party in the Canadian general election last month through more question marks over the project.

“In order to allow time for certainty regarding the Nebraska route, TransCanada requests that the [US] State Department pause in its review of the presidential permit application for Keystone XL,” The Wall Street Journal reported the company as saying on Monday.

The US state of Nebraska also wants to review the Keystone XL project before giving permission for it to pass through its territory.

The move comes after demand for Canada’s shale oil production has slumped as global oil prices remain low.

Oil prices fell once more on Monday to close in New York at $46.29 for a barrel of Nymex crude, The Wall Street Journal also reported.