New forecasts of booming oil output and falling demand in the United States have only strengthened the case for the Canada-to-United States Keystone XL pipeline, a top executive with proponent TransCanada Corp said on Wednesday.

President Barack Obama last January rejected it on concern about the line's route across a Nebraska aquifer, effectively removing it from much of the 2012 campaign debate.

With a new environmental assessment of the project expected soon, the U.S. State Department is moving closer to another decision on whether the $5.3 billion pipeline is in the national interest.

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