Pipeline protester
© Lucy Nicholson / Reuters
The U.S. Department of State has signed and issued the presidential permit for the construction of the controversial Keystone XL Pipeline, according to TransCanada Corp, the company behind the pipeline's construction.

"We greatly appreciate President Trump's Administration for reviewing and approving this important initiative and we look forward to working with them as we continue to invest in and strengthen North America's energy infrastructure," TransCanada's President and CEO Russ Girling said in a statement.

"This is a significant milestone for the Keystone XL project," he added.

The pipeline which would link Canada's heavy oil sands with the United States East Coast refineries had been blocked multiple times throughout the permit process and was even blocked by former U.S. President Barack Obama.

The former US president claimed the pipeline would not impact fuel prices for the average American and would greatly increase carbon emissions linked with climate change.

There is still a substantial amount of red tape for TransCanada to cut through before the pipeline can be completed as they will need further permits at a state level in Nebraska, Montana and South Dakota.

The issuance of the permit has ended the company's U.S. constitutional challenge to Former President Obama's 2015 veto.

The company had initially applied for a permit as far back as 2008 but, in one of his first acts in office, President Trump invited TransCanada to resubmit their application.

President Trump is scheduled to make a formal announcement about the approval at 10.15am in Washington DC.

In light of the 'lower for longer' era the oil markets have been experiencing since the market crash of 2014, many question the wisdom of such a decision in light of the widespread divestment initiatives in the oil industry taking place worldwide.

In light of the 'lower for longer' era the oil markets have been experiencing since the market crash of 2014, many question the wisdom of such a decision in light of the widespread divestment initiatives in the oil industry taking place worldwide.

TransCanada's share price saw a sizable jump to $47.02 in early trading on the back of the announcement, but has since levelled off to hover around the $46.26 mark after opening at $46.20.