TransCanada shares rise after Republicans take US Senate

Wed Nov 5, 2014 10:51am EST
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Nov 5 (Reuters) - Shares of TransCanada Corp, Canada's No.2 pipeline company, rose 3 percent after a Republican takeover of the U.S. Senate revived hopes for its Keystone XL pipeline project that could carry Alberta oilsands to the U.S. Gulf Coast.

Most U.S. energy stocks rose after the Republican win, which is expected to limit President Barack Obama's legislative agenda in his last two years in office and lead to legislative measures that directly affect the energy sector.

The election result is expected to smoothen the way for the Keystone XL project, which has been awaiting U.S. presidential permit for more than six years amid bitter opposition from environmental groups.

A Republican-led Senate is expected to speed up approval of oil and gas pipelines, reform crude and natural gas export laws, and motivate the Obama administration to include those energy exports in new, or broader, trade agreements.

On Tuesday, TransCanada had raised estimated capital costs for its Keystone XL project to C$8 billion ($7.02 billion) from an initial projection of C$5.4 billion, citing lengthy delays.

TransCanada shares were up 3 percent at C$56.89 on the Toronto Stock Exchange, while its U.S.-listed shares also rose 3 percent to $49.74 in morning trading.

S&P Energy Index was up 2 percent. (Reporting By Shubhankar Chakravorty in Bangalore; Editing by Don Sebastian)