TransCanada Corp. (TransCanada), on behalf of TransCanada Keystone Pipeline, LP (Keystone), on Friday announced that the U.S. Department of State has issued a Presidential Permit to Keystone authorizing the construction, maintenance and operation of facilities at the United States and Canada border to transport crude oil between the two countries.
The Permit follows the Department of State's Record of Decision and National Interest Determination, which found that issuance of the Presidential Permit for the Keystone Pipeline would serve the national interest.
"The Presidential Permit is a significant regulatory approval required to proceed with construction of the Keystone Pipeline, which will move a growing supply of Canadian crude oil to key U.S. markets," says Hal Kvisle, TransCanada president and chief executive officer. "We will begin construction in second quarter 2008 to achieve an in-service date of fourth quarter 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 U.S. state-level regulatory applications.
Affiliates of TransCanada Corporation will be responsible for constructing and operating the 3,456-kilometer (2,148-mile) Keystone Pipeline, which will be capable of delivering 590,000 barrels per day of crude oil from Hardisty, Alberta, to U.S. Midwest 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.
To view a map of the proposed pipeline route and obtain other information about the Keystone Pipeline, please visit the project web page at www.transcanada.com/keystone.
Subsidiaries of TransCanada and ConocoPhillips are in partnerships that will own the Keystone Pipeline. The partnerships are: TransCanada Keystone Pipeline, LP (U.S.) and TransCanada Keystone Pipeline Limited Partnership (Canada).
With more than 50 years experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas pipelines, power generation, gas storage facilities, and projects related to oil pipelines and LNG facilities. TransCanada's network of wholly owned pipelines extends more than 59,000 kilometers (36,500 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with approximately 355 billion cubic feet of storage capacity.