TransCanada Proposes Keystone Oil Pipeline Project
CALGARY, Alberta – February 9, 2005 – (TSX: TRP) (NYSE: TRP) – TransCanada Corporation today announced it is proposing a US$1.7 billion oil pipeline project to transport approximately 400,000 barrels per day of heavy crude oil from Alberta to Illinois.
Transporting oil from Hardisty, Alberta to markets at Wood River and Patoka, Illinois, the proposed Keystone Pipeline would be about 3,000 kilometres (1,870 miles) in length. In addition to new pipeline construction, it would require the conversion of 1,240 kilometres (770 miles) of one of the lines in TransCanada’s existing multi-line Alberta and Mainline natural gas pipeline systems in Alberta, Saskatchewan and Manitoba. TransCanada’s other existing pipelines will continue to transport Western Canada’s natural gas to markets in Canada and the United States.
“TransCanada is in the business of connecting energy supplies to markets and we view this opportunity as another way of providing a valuable service to our customers,” said Hal Kvisle, chief executive officer. “Converting one of our natural gas pipeline assets for oil transportation is an innovative, cost competitive way to meet the need for pipeline expansions to accommodate anticipated growth in Canadian crude oil production during the next decade.”
The proposed pipeline would begin in the oil hub of Hardisty, Alberta and extend across Saskatchewan and Manitoba and down through North Dakota, South Dakota, Iowa, Missouri and Illinois.
TransCanada will continue to meet with oil producers, refiners and industry groups, including the Canadian Association of Petroleum Producers, to gauge additional interest and support for the Keystone project. Preliminary discussions with stakeholders including communities, government representatives and landowners along the proposed route have begun.
Later this year, producers, refiners and marketers interested in securing capacity on the pipeline will be invited to participate in a customary, industry-wide Open Season process. TransCanada has received support for this project from a number of producers and refiners. When sufficient support for this project from oil producers and shippers is obtained, TransCanada will proceed with the necessary regulatory applications.
TransCanada will require regulatory approvals from a variety of Canadian and U.S. agencies before construction can begin. Input from all stakeholders will be received through the regulatory process and an extensive public consultation process.
To view a map of the proposed pipeline route and other information about the Keystone project, please visit the project web page at www.transcanada.com/keystone
TransCanada is a leading North American energy company. TransCanada is focused on natural gas transmission and power services with employees who are expert in these businesses. TransCanada’s network of approximately 41,000 kilometres (25,600 miles) of pipeline transports the majority of Western Canada’s natural gas production to the fastest growing markets in Canada and the United States. TransCanada owns, controls or is constructing more than 4,700 megawatts of power generation – enough to meet the electricity needs of about 4.7 million average households. The Company’s common shares trade under the symbol TRP on the Toronto and New York stock exchanges.
FORWARD LOOKING INFORMATION
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.
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