TransCanada Markets Keystone Pipeline Expansion and Cushing Extension

TransCanada Corporation has announced the start of a binding Open Season for an expansion and extension of the proposed Keystone Oil Pipeline.

The purpose of the Open Season is to obtain binding commitments to support the expansion of the proposed Keystone Pipeline from a nominal capacity of approximately 435,000 barrels per day to 590,000 barrels per day and the construction of a 468-kilometre (291-mile) extension of the U.S. portion of the pipeline from the Nebraska/Kansas border to the refining and terminal hub near Cushing, Oklahoma. The US$700 million expansion and extension project is targeted to be in-service in the fourth quarter of 2010.

The Keystone Pipeline is a proposed 2,965-kilometre (1,842-mile) pipeline with a nominal capacity to transport approximately 435,000 barrels per day of crude oil from Hardisty, Alberta, to U.S. Midwest markets at Wood River and Patoka, Illinois. It is an innovative and cost-competitive proposal to transport a significant amount of new Canadian crude oil to key U.S. markets commencing in late 2009.

The Keystone Pipeline is underpinned by long-term transportation commitments from producers totaling 340,000 barrels per day with an average contract duration of 18 years as a result of a previous binding open season process.

Regulatory applications have been filed to construct and operate the pipeline in Canada and the U.S., with decisions anticipated to be received by the end of 2007. The Keystone Pipeline is on schedule to meet an in-service date in the fourth quarter of 2009.

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Posted 31/01/07

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