The Obama administration will reject TransCanada Corp. (TRP)’s Keystone XL oil pipeline and let the company file a revised route that avoids an environmentally sensitive area in Nebraska, according to two people familiar with the decision. The shares fell as much as 4.8 percent.
The decision may be announced as soon as today by the State Department, which has been reviewing the project crossing six U.S. states. Environmental groups immediately issued statements backing Obama’s decision.
“President Obama is about to destroy tens of thousands of American jobs” by not approving the $7 billion Keystone pipeline, Brendan Buck, a spokesman for U.S. House Speaker John Boehner, an Ohio Republican, said in an e-mailed statement.