Saturday, March 15, 2008

Canada-US link gets green light

TransCanada has been given the green light by the US State Department to build pipeline facilities at the border between the US and Canada as part of its pending $5.2 billion crude pipe project that will eventually link the two countries.

TransCanada's Keystone Pipeline, which is co-owned by ConocoPhillips, will begin construction on the pipe in the second quarter of 2008. The in-service date is expected some time during the fourth quarter of 2009. Keystone received National Energy Board approval last year for two major regulatory applications to construct and operate the Canadian portion of the project. Keystone also received approvals in 2007 and early 2008 for major US state-level regulatory applications. Affiliates of TransCanada will be responsible for constructing and operating the 3456-kilometer (2148-mile) Keystone Pipeline, which will be capable of delivering 590,000 barrels per day of crude oil from Hardisty, Alberta, to US mid-west markets at Wood River and Patoka, Illinois, and to Cushing, Oklahoma. Initial deliveries to Patoka are expected to begin in late 2009. Keystone has secured firm long term contracts of 495,000 barrels per day with an average duration of 18 years.

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