Estimated to cost $8bn, the Keystone XL crude oil pipeline will have a capacity to transfer over 800,000 barrels per day of heavy crude from Canada's oil sands in Alberta into Nebraska, US.

In the application filed with the PSC for the Keystone XL Pipeline, TransCanada proposed three routes that included Preferred Route, Mainline Alternative Route and Sandhil ls Alternative Route.

The Mainline Alternative Route was one of three proposed routes for the pipeline project, which is expected to strengthen energy security in the US.

Expected to create more than  42,000 jobs during the construction phase, the pipeline project will help reduce natural gas imports to the US from the Middle East and Venezuela.

The pipeline will be built to transport oil sourced from the Western Canadian Sedimentary Basin (WCSB) and Bakken supply basin to the existing Keystone Pipeline in to feed the US refineries on the Gulf Coast.

TransCanada president and CEO Russ Girling said: "As a result of today's decision, we will conduct a careful review of the Public Service Commission's ruling while assessing how the decision would impact the cost and schedule of the project.”

The project, which secured presidential permit from the US government in March 2017, has faced obstruction for eight years.

Meanwhile, TransCanada said it would move ahead with its $24bn near-term capital program in addition to other longer-term opportunities.

In March, TransCanada had secured presidential permit from the US government to move ahead with the construction of the Keystone XL crude oil pipeline project. The approval, however, reversed former US President Barack Obama’s decision to reject the project.

Image: The US intends to reduce its natural gas imports. Photo: courtesy of supakitmod/