TransCanada wins approval for U.S. section of 3,456-km Keystone Pipeline

Pipeline & Gas Journal,  May, 2008  

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The U.S. Department of State has issued a Presidential Permit to TransCanada Keystone Pipeline authorizing the construction, maintenance and operation of facilities to transport crude oil between the U.S. and Canada. Now that this final regulatory approval has been granted, TransCanada will begin construction of the U.S. section of the pipeline in Q2 2008, with the aim to go on-line in Q4 2009.

Though the National Energy Board approved the main construction and operation of the pipeline in Canada in September 2007, the sponsors are still waiting for permission to construct the additional pumping facilities needed for the pipeline expansion from the original 435,000 bopd to 590,000 bopd.

Affiliates of TransCanada will construct and operate the 3,456-km Keystone Pipeline, which will deliver 590,000 bpd of crude oil from Hardisty, Alberta, to U.S. Midwest markets at Wood River and Patoka, IL, and to Cushing, OK. Projects deliveries to Patoka should begin in late 2009.

Keystone--a 50:50 joint venture between TransCanada and ConocoPhillips--has secured long term contracts of 495,000 bopd with an average duration of 18 years.

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