WINNIPEG, Manitoba/NEW YORK (Reuters) - A U.S. judge in Montana has blocked construction of the Keystone XL pipeline designed to carry heavy crude oil from Canada to the United States, drawing praise on Friday from environmental groups and a rebuke from President Donald Trump.
The ruling of a U.S. Court in Montana late on Thursday dealt a setback to TransCanada Corp, whose stock fell 1.7 percent in Toronto. Shares of companies that would ship oil on the pipeline also slid.
TransCanada said in a statement it remains committed to building the $8 billion, 1,180 mile (1,900 km) pipeline, but it has also said it is seeking partners and has not taken a final investment decision.
The ruling drew an angry response from Trump, who approved the pipeline shortly after taking office.
It also piles pressure on Canadian Prime Minister Justin Trudeau to assist the country’s ailing oil sector by accelerating crude shipments by rail until pipelines are built. Clogged pipelines have made discounts on Canadian oil even steeper than they were earlier this year when Scotiabank warned that they may cost the country’s economy C$16 billion.
U.S. District Court Judge Brian Morris wrote that a U.S. State Department environmental analysis of Keystone XL “fell short of a ‘hard look’” at the cumulative effects of greenhouse gas emissions and the impact on Native American land resources.
“It was a political decision made by a judge. I think it’s a disgrace,” Trump told reporters at the White House.
The ruling was a win for environmental groups who sued the U.S. government in 2017 after Trump announced a presidential permit for the project. Tribal groups and ranchers also have spent more than a decade fighting the planned pipeline.
“The Trump administration tried to force this
