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TransCanada's $15 billion U.S. Keystone XL NAFTA suit suspended

Staff Writer |
TransCanada Corp has suspended a $15 billion NAFTA suit filed against the United States over the Keystone XL pipeline after U.S. President Donald Trump approved the project last month.

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The monthlong suspension of the challenge under the North American Free Trade Agreement (NAFTA) came after Trump signed an executive order smoothing the path for Keystone XL.

He invited the company to reapply for a permit after the administration of former president Barack Obama had rejected the project.

If operational, Keystone XL would bring more than 800,000 barrels per day of heavy crude to the Gulf Coast from Canada, which holds the world's third-largest reserves but lacks the infrastructure to move it easily.

The project has received regulatory approval and government backing in Canada, but in the United States, environmentalists had campaigned against it for more than seven years.

The website of the International Centre for the Settlement of Investment Disputes showed TransCanada's legal challenge over the pipeline was suspended until March 27, pursuant to mutual agreement.

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