A spokesman for the State Department tells Washington reporters Secretary of State John Kerry wants to finish the review of Keystone XL.
TransCanada asked the State Department to suspend its review until Nebraska settled on a route through the state.
The $8 billion dollar pipeline would carry crude from the oil sands of western Canada to refineries along the Gulf Coast in Texas.
The request for a suspension of the review comes on the heels of TransCanada’s decision to take a different course in Nebraska. TransCanada abandoned efforts to use new state law to sanction the Keystone XL route through Nebraska and reverted to older statutes that gives jurisdiction over common carriers to the Public Service Commission.
TransCanada has asked the PSC to approve the route approved previously by Gov. Dave Heineman. The PSC review could take up to a year.
TransCanada issued a statement after the State Department decision, saying it respects the decision. TransCanada says it will continue to demonstrate that Keystone XL is in the national interest of the United States. The company says the project will create 2,200 jobs in Canada and 9,000 in the United States, plus tens of thousands of other indirect jobs.
According to TransCanada, the fundamental question remains: Do Americans want to continue to import millions of barrels of oil every day from the Middle East and Venezuela or do they want to get their oil from North Dakota and Canada through Keystone XL? We believe the answer is clear and the choice is Keystone XL.