Keystone Oil Pipeline receives Presidential Permit - Construction to begin in second quarter of 2008
CALGARY, Alberta – March 14, 2008 – TransCanada Corporation (TSX, NYSE: TRP) (TransCanada), on behalf of TransCanada Keystone Pipeline, LP (Keystone), today announced that the U.S. Department of State 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-kilometre (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.html.
About the Keystone partnerships
Subsidiaries of TransCanada and ConocoPhillips (NYSE: COP) 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 kilometres (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. A growing independent power producer, TransCanada owns, or has interests in, approximately 7,700 megawatts of power generation in Canada and the United States. TransCanada’s common shares trade on the Toronto and New York stock exchanges under the symbol TRP.
Note: All financial figures are in Canadian dollars unless noted otherwise.
This news release may contain certain information that is forward looking and is subject to important risks and uncertainties. The words "anticipate", "expect", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward looking information. All forward-looking statements are based on TransCanada’s beliefs and assumptions based on information available at the time such statements were made. The results or events predicted in this information may differ from actual results or events. Factors which could cause actual results or events to differ materially from current expectations include, among other things, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability and price of energy commodities, regulatory decisions, changes in environmental and other laws and regulations, competitive factors in the pipeline and energy industry sectors, construction and completion of capital projects, access to capital markets, interest and currency exchange rates, technological developments and the current economic conditions in North America. By its nature, such forward‑looking information is subject to various risks and uncertainties which could cause TransCanada's actual results and experience to differ materially from the anticipated results or other expectations expressed. For additional information on these and other factors, see the reports filed by TransCanada with Canadian securities regulators and with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on this forward‑looking information, which is given as of the date it is expressed in this news release or otherwise, and TransCanada undertakes no obligation to update publicly or revise any forward‑looking information, whether as a result of new information, future events or otherwise, except as required by law.
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