Wednesday, 17 July, 2019

TransCanada says it's moving forward with Keystone XL, touting commercial support

Primary construction on the pipeline is expected to start in 2019 Primary construction on the pipeline is expected to start in 2019
Russell Knight | 18 January, 2018, 21:09

Nebraska regulators late previous year approved a Keystone route through the state, though it was not the path TransCanada preferred, leading to speculation the company could pull the plug on the $8 billion project.

A leading opponent of the project, Bold Nebraska, brushed off Thursday's announcement, calling the 500,000-barrel-a-day commitment for a pipeline created to carry 830,000 barrels "shockingly weak".

Just three months after cancelling its Energy East pipeline proposal, TransCanada Corp. has announced that it plans to proceed, full steam ahead, with the cross-border Keystone XL project.

The Calgary-based company secured "approximately 500,000 barrels per day of firm, 20-year commitments", according to a statement on Thursday.

TransCanada says interest in the project remains strong and it will look to continue to secure additional long-term contracted volumes.

Included in the commitments is a 50,000-barrel-a-day contract with the Province of Alberta, which gets part of its oil royalties in crude oil rather than cash.

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Cheryl Oates, director of communications for Alberta Premier Rachel Notley, said that more pipelines were needed to keep up with the supply of oil to be shipped.

TransCanada is continuing outreach in the communities where the pipeline will be constructed and is working collaboratively with landowners in an open and transparent way to obtain the necessary easements for the approved route.

In a statement, Russ Girling, TransCanada's chief executive, thanked U.S. President Donald Trump for reviving the project after former President Barack Obama rejected TransCanada's request to build it.

However, the Canadian pipeline giant said it still hasn't definitively chose to build the much-delayed and disputed pipeline project.

Over the past several years, the $5.2 billion project became a focal point of the anti-crude environmental movement to oppose the pipeline that would carry up to 830,000 barrels a day of crude oil from Canada's tar systems through the Keystone system that terminates near Houston and Beaumont.

Preparation for construction has already begun, the company said.

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