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Keystone XL pipeline decision 'faces delay' Keystone XL: Canada-US pipeline route decision delayed
(40 minutes later)
The Obama administration will reassess the route of a Canada-US oil pipeline, in a move likely to delay a decision on the controversial project past the 2012 election, officials have told US media. The Obama administration is to reassess the route of a controversial Canada-US oil pipeline, delaying a decision on the project by up to 18 months.
Studying a new route for Keystone XL could take between 12 to 18 months. Studying a new route for Keystone XL is now expected to push the final decision past the 2012 presidential election.
The state department's handling of the $7bn (£4.4bn) project is already under review for alleged wrongdoing.The state department's handling of the $7bn (£4.4bn) project is already under review for alleged wrongdoing.
The 1,600-mile (2,700-km) pipeline would run from Canada to the Texas coast.The 1,600-mile (2,700-km) pipeline would run from Canada to the Texas coast.
Correspondents any the delay would spare US President Barack Obama having to make a politically sensitive decision - that will be closely watched by environmental groups and the oil industry - during a presidential election year. Correspondents say the delay will spare US President Barack Obama the need to make a politically sensitive decision - that will be closely watched by environmental groups and the oil industry - during a presidential election year.
Protesters circled the White House on Sunday, demanding the project be scrapped. Trumping oil?
Environmental groups have pressed Mr Obama on what they say is his lack of action on climate change issues and criticised the route of the project.
The current route runs through a portion of Nebraska that contains a major aquifer.
A US official told Reuters news agency that an alternate route could shift the pipeline away from that area, known as the Sand Hills.
Republicans and oil industry groups have already said that delaying or cancelling the project would cost both new jobs and harm prospects for US energy independence.
Environmental protesters circled the White House on Sunday, demanding the project be scrapped.
"The US administration is feeling the heat and wants to put off a decision until after the election," John Bennett of the pressure group Sierra Club Canada told Reuters.
"It's the first time the environment has trumped oil in US politics."
Some believe the delay could kill the project entirely.
"To delay the decision on Keystone XL is in effect a decision itself," said Mark Routt, an analyst at KBC, an oil industry consulting company.
The state department is handling public consultations on the project as the pipeline would cross the US border with Canada, but the White House has made it clear that President Barack Obama will influence the final outcome.
Meanwhile, Canadian oil minister Joe Oliver said a US decision to delay or cancel the pipeline would not stop oil sands development in the province of Alberta.