Senate Keystone vote 'not a surprise,' say industry leaders

Reaction to yesterday's Keystone XL Pipeline vote in the U.S. Senate has indicatedthat the outcome of the vote wasn't surprising.

In a vote of 59-41, the Senate rejected a bill that would speed approval of the pipeline, which would run from Canada to the Texas Gulf Coast.

• Keystone XL pipeline bill rejected by U.S. Senate

The Canadian Association ofPetroleumProducers (CAPP) called the vote a letdown, but vice-president GregStringhamsaid the decision was not completely unexpected.

"I mean this is the same Congress that has not passed several other bills related to Keystone XL.But still you always hope there's going to be some progress on this," saidStringham.

Republican SenatorJohnHoevenis confident the pipeline bill will be passed in the new year once the newly elected Senate takes power, which will shift from Democratto Republican control.

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"All along I expected that we would be in the new Congress after the first of the year and passing the bill then," Hoeven toldThe Calgary Eyeopener on Wednesday.

"The Democrats wanted to bring it up now and try it. Obviously I was willing to do that but they werent able to deliver the additional votes we needed."

Hoeven said in the new year, the real challenge won't be getting the votes so much as dealing with the presidential veto.

Bill 2280 would have authorized Calgary-basedTransCanada Corp.,the company behind the project, "to construct, connect, operate, and maintain the pipeline and cross-border facilities," as specified in an application the company filed in 2012.

On Wednesday, one TransCanadaofficial said the vote was not surprising andwill not change the company's strategy.

TransCanadas president and CEO Russ Girling suggestedthe vote was actuallypositive, noting thatmany people who voted against the project do support Keystone.

"It looks like two-thirdsor so of the Senate is supportive, obviously we see two-thirds of Congress," said Girling. "Two-thirds of the American public are supportive of the project, so we view that as being a fairly positive signal for the project in the long run once we get through the regulatory process."

Alberta Premier Jim Prentice says he's not giving up on theKeystone XL pipeline.He plans to travel to Washington in January to lobby for it.