TransCanada nets more commitments to proposed Keystone XL extension
TransCanada says it has received additional binding commitments in support the Keystone XL pipeline following the successful conclusion of its Keystone Houston Lateral open season.
Subject to regulatory approvals, TransCanada will proceed with an approximate 80-kilometer (48-mile) pipeline extension from the proposed Keystone XL system to facilitate deliveries into the Houston refining market (the Houston Lateral) and increase the capacity of Keystone XL to 830,000 bpd.
The Keystone pipeline system has now secured long-term firm contracts in excess of 1.1 million bpd, the company said.
"This significant demand and additional long-term customer commitments confirm the continued strong shipper support of TransCanada and the need for Keystone XL to move forward," said Russ Girling, TransCanada's CEO.
"Proceeding with the extension of the Keystone XL system to Houston and increasing capacity on the pipeline system will further enhance the connection of a secure, growing and reliable supply of Canadian crude oil and domestic US crude oil with the largest refining market in North America while providing additional flexibility to our shippers."
The Keystone Houston facilities will more than double the US Gulf Coast refining market capacity directly accessible from the Keystone pipeline system to over four million bpd by providing access to the key refining market in the Houston area, according to the company.
The Keystone Houston Lateral and capacity expansion are included in the original scope of the Keystone XL US presidential permit application process, which received a final environmental impact statement in August.
Based on the Department of State's announcement that further assessment of an alternative route for Keystone XL is needed in Nebraska to move forward by the first quarter of 2013, the pipeline is expected to be in service by the end of 2014, according to the company.
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