TransCanada gets presidential permit for Keystone XL

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A depot used to store pipes for Transcanada Corp's planned Keystone XL oil pipeline is seen in Gascoyne, North Dakota, January 25, 2017. REUTERS/Terray Sylvester (Copyright Reuters 2017)

TransCanada Corp said on Friday the U.S. Department of State issued a presidential permit for the construction of the Keystone XL pipeline linking Canadian oil sands to U.S. refiners, a project blocked by former President Barack Obama.

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President Donald Trump signed an executive order to advance the project soon after taking office in January, saying it would create thousands of jobs.

Obama had said the pipeline would do nothing to reduce fuel prices for U.S. motorists and would contribute emissions linked to global warming.

Reuters reported earlier on Friday that Trump would announce the approval of the pipeline at the White House alongside TransCanada's chief executive.

The move marks the beginning of lengthy process which includes getting approvals from state regulators. The project could also face legal challenges.

The multibillion-dollar pipeline would bring more than 800,000 barrels per day of heavy crude from Canada's oil sands in Alberta into Nebraska, linking to an existing pipeline network feeding U.S. refineries and ports along the Gulf of Mexico.

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(Reporting by Ahmed Farhatha in Bengaluru; Editing by Sai Sachin Ravikumar)