Jim Flaherty is sounding an ominous tone about Washington's move to delay a decision on the proposed Keystone XL pipeline project for a year.

The Federal finance minister says a delay that long could derail the $7-billion megaproject and encourage Canada to sell more oil to Asia instead of the US.
 
The Keystone project would move oilsands crude from Alberta to refineries in Texas, and is also expected to cut through southwest Saskatchewan and run near Shaunavon.
 
On Thursday, the US State Department announced it will delay a decision on whether the pipeline project can move ahead until 2013, after ordering a review of alternate routes to avoid ecologically sensitive land in Nebraska.