TransCanada, the company behind the controversial Keystone XL oil pipeline, has asked the government of the United States to suspend its review of the $8 billion project.
The fate of the project, which sparked a political war between the oil industry and environmentalists, could now potentially depend on a decision that would be made by the next president of the country.
The move of TransCanada to ask for the review suspension is seen by many as the company's attempt to avoid being rejected by President Barack Obama, who is increasingly becoming environmentally focused as he winds up his second term. The request could also push the decision on the proposed project to after the presidential election in November next year.
Hillary Clinton, the Democratic front-runner, has previously expressed her opposition to the pipeline. However, many Republican hopefuls have stated their support for the Keystone XL pipeline to make the United States less reliant on oil supply from the Middle East.
"We are asking State to pause its review of Keystone XL based on the fact that we have applied to the Nebraska Public Service Commission for approval of its preferred route in the state," said TransCanada CEO and President Russ Girling.
The almost 1,200-mile pipeline would transport 830,000 barrels daily from the oil sands of Alberta, Canada, to refineries and ports in the Gulf of Mexico. Environmentalists oppose the proposed project as it would result in more release of climate-harming carbon.
Environmentalists have described TransCanada's appeal as a desperate attempt to avoid rejection and have urged President Obama to say no to the project now. In addition, crude prices in the United States have lowered to $50 per barrel compared to almost $150 per barrel in 2008, when TransCanada filed its federal application for the project.
TransCanada's request comes right before the company would release its earnings report. The White House, however, said that the decision on the project will still be released before President Obama leaves his post in January 2017.
President Obama vetoed the high-profile bill that would have allowed the construction of the Keystone XL pipeline earlier in February. Despite being passed in the House through a 270-152 vote, the president blocked the bill, stating that it circumvents standard procedures for the approval of major infrastructure projects.
