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Nov 5 (Reuters) - Shares of TransCanada Corp, Canada's No.2 pipeline company, rose as much as 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.
"We will work with legislators who want to support a privately funded project that employs 42,000 Americans, invests $2 billion in wages across the United States and injects $3.4 billion into the U.S. economy," Chief Executive Russell Girling said in an e-mail.
Republican Senator John Hoeven told Reuters that Republicans will quickly introduce stand-alone legislation in the first quarter of 2015 that would approve the Keystone XL crude oil pipeline from Canada.
The 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 2.65 percent at C$56.63 on the Toronto Stock Exchange in afternoon trading, while its U.S.-listed shares rose 2.69 percent to $49.67.
S&P Energy Index was up 1.63 percent. (Reporting By Shubhankar Chakravorty in Bangalore and Scott Haggett in Calgary; Editing by Don Sebastian)