REGINA – Saskatchewan Premier Brad Wall says a delay in the proposed Keystone XL pipeline underscores the importance of the Energy East pipeline.
Wall says without a pipeline, more oil will be transported by rail, which he argues brings a higher safety risk.
Keystone XL would carry crude from Canada to the Gulf Coast, but the company involved has asked the U.S. government to temporarily suspend the application.
TransCanada Corp. says it needs more time as it deals with legal wranglings over the route in Nebraska.
Wall, who has been one of the most vocal Keystone supporters, says he’ll rely on the company’s judgment that pausing the project is the right thing to do.
The premier says the delay will have a fiscal impact on provinces, because Keystone would have meant a better price for Canadian oil.