TransCanada Corp. officials emphasized that the recent rejection of a Presidential Permit by the U.S. State Department for the Keystone XL Pipeline was not based on the merits of the company’s application, but the 60-day decision deadline imposed by Congress in a bill to extend payroll tax cuts in January. The State Department rejection was due to not having enough time to fully consider the project.

“We’re obviously disappointed with that decision. A TransCanada commitment to the project remains very strong, and the company will reapply for the Presidential Permit,” ...