TransCanada asks U.S. to delay Keystone XL pipeline review

TransCanada Corporation has asked the U.S. State Department to pause its review of the presidential permit application for the Keystone XL pipeline.

The company sent a letter to Secretary of State John Kerry on Monday, saying it believes there is sound precedent for making the request to pause the review.

That adds a new wrinkle to one of the biggest Canada-U.S. political irritants of recent years, involving a proposed pipeline from Alberta to Texas.

TransCanada's letter asks the U.S. government to delay its decision on a border-crossing permit, pending the resolution of a dispute in Nebraska over the route.

If heeded, the request could potentially have two major implications: First, it could spare the company a potential rejection from U.S. President Barack Obama. It could also delay the issue beyond the 2016 U.S. election, making it a campaign issue and placing the file in the hands of a future administration.

Surprise twist

The request is a stunning turn of events for the project, which would carry nearly one-quarter of all Canadian oil exports. Until recently, the company and the Conservative government had been pleading for approval.