Trump Administration Approves Keystone XL

Newly inaugurated U.S. President Donald Trump signed an executive order on Tuesday morning to approve a couple of hotly-contested pipeline projects, most notably TransCanada Corporation’s (TSX:TRP)(NYSE:TRP) Keystone XL. Energy Transfer Partners’ (NYSE:ETP) Dakota Access project was also approved.

Approval of both projects was long expected after Trump made both a campaign issue. He repeatedly promised to stay out of the way of major energy projects, a move that is expected to encourage investment in the struggling energy.

Both Keystone XL and Dakota Access were heavily protested as environmentalists became concerned the two projects would accelerate climate change or contaminate ground water. President Obama gave in, nixing Keystone XL and delaying Dakota Access.

The new president said the approval will come with certain conditions. "We are going to renegotiate some of the terms," Trump told reporters in the Oval Office on Tuesday.

These new conditions aren’t expected to be anything major. In fact, the newly-elected president has been saying that he plans to make things easier for energy producers than they were under Obama’s administration.

TransCanada hasn’t officially commented yet on the news, but the company did say shortly after the election that it was still committed to Keystone XL, and planned to work with the new administration to get a deal done.

Investors were bullish, anyway. TransCanada shares increased 2.7% in Tuesday’s trading, rising $1.70 to $64.24, which is a new 52-week high.