WASHINGTON - TransCanada's Keystone XL pipeline has been denied a lifeline thrown to it by congressional Republicans.

Yesterday, the U.S. Senate narrowly rejected their attempts to bypass the White House and force the immediate approval of the controversial project.

U.S.President Barack Obama personally contacted some Democratic lawmakers and urged them to vote no.

He argued the State Department must be allowed to do a thorough environmental review of the 7.6 billion dollar pipeline that would move Alberta oilsands crude to refineries in Texas.

Pipeline proponents argue the project will create jobs and help end American dependence on oil from hostile regimes.

Opponents, however, call it an environmental disaster waiting to happen.

TransCanada is still hoping to proceed with the pipeline by rerouting it around environmentally sensitive water resources in Nebraska.