TransCanada Markets Keystone Pipeline Expansion and Cushing Extension
CALGARY, Alberta – January 30, 2007 – TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) today 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.
During the Open Season period, which will expire at noon MDT on March 14, 2007, interested parties may submit binding bids for firm capacity transportation of crude oil from Hardisty, Alberta to Cushing, Oklahoma or to Wood River and Patoka, Illinois. Parties are invited to contact David Diakow, Manager, Oil Business Development at 403.920.6019 or Marty Heeg, Director, Oil Business Development at 403.920.2101 for more information. The Keystone website (www.transcanada.com/keystone) provides additional information about the Keystone Pipeline and the Open Season.
TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas pipelines and storage facilities, and power generation. For 50 years, TransCanada has transported the majority of Western Canada’s natural gas production to key Canadian and U.S. markets. On closing of the acquisition of the ANR Pipeline Company and ANR Storage Company announced December 22, 2006, TransCanada’s network of wholly owned pipelines will extend more than 59,000 kilometres (36,500 miles), tapping into virtually all major gas supply basins in North America. TransCanada will also become one of the continent’s largest providers of gas storage and related services with approximately 360 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.
Certain information in this news release is forward-looking and is subject to important risks and uncertainties. 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, competitive factors in the pipeline and power industry sectors, and the current economic conditions in North America. For additional information on these and other factors, see the reports filed by TransCanada with Canadian securities regulators and with the United States Securities and Exchange Commission. TransCanada disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact:
(403) 920-7859 or Toll Free (800) 608-7859
Investor & Analyst Inquiries:
David Moneta/Myles Dougan