=TransCanada (TRP): Trump administration OK's $8B Keystone XL pipeline

• TransCanada announces that the U.S. Department of State has signed and issued a Presidential Permit to construct the Keystone XL Pipeline
• In conjunction, TransCanada has discontinued its claim under Chapter 11 of the North American Free Trade Agreement (NAFTA) and will end its U.S. Constitutional challenge.

The Trump administration issued a permit March 24 to build the $8 billion Keystone XL pipeline, which is expected to allow TransCanada Corp. (NYSE: TRP) to complete the project, the Associated Press reports.

Environmental groups and energy industry advocates had been fighting for years over the 1,700-mile pipeline, which stretches from Canada to the Texas Gulf Coast. The decision "marks one the biggest steps taken to date by the Trump administration to prioritize economic development over environmental concerns," according to the AP.

The southern leg of the Keystone Pipeline System — which runs from Cushing, Oklahoma, to southern Texas — was complete by early 2014. The controversial portion would cross the U.S.-Canada border.

In November 2015, President Obama denied TransCanada's permit to build the Keystone XL pipeline, which would have moved crude oil from Canada’s tar sands to Gulf Coast refineries.

In January 2016, the Canada-based company, which has a significant presence in Houston, filed a lawsuit claiming that the president’s decision exceeded his power under the U.S. Constitution and said it would initiate a claim under Chapter 11 of the North American Free Trade Agreement on the basis that “the denial was arbitrary and unjustified.” TransCanada was seeking to recover more than $15 billion in costs and damages through the NAFTA claim.

Even with the Trump administration's new permit, the pipeline faces route challenges and opposition from landowners, environmental groups and Native American tribes and landowners, the AP reports.

Separately, the Obama administration had blocked a critical junction for the Dakota Access pipeline under Lake Oahe as the U.S. Army Corps of Engineers explored alternate routes. The delays have cost Dallas-based Energy Transfer Partners LP (NYSE: ETP) hundreds of millions of dollars so far.

But early in his presidency, President Trump signed executive orders to move forward the controversial Keystone XL and Dakota Access oil pipelines.

ETP CEO Kelcy Warren gave more than $100,000 to Trump’s campaign and has criticized the previous administration for interfering in the project. Trump previously held stock in ETP, according to his financial disclosures. His transition team said that he sold the holdings last summer, the Dallas Business Journal previously reported.

New presidential executive orders to speed up environmental reviews for interstate pipeline projects are expected to create a windfall for refining companies operating along the Gulf Coast.