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TransCanada’s Keystone Pipeline project achieved a second key Canadian regulatory milestone when the National Energy Board (NEB) recently approved an application by TransCanada Keystone Pipeline GP Ltd. (Keystone) to construct and operate the Canadian portion of the Keystone Pipeline project, including converting a portion of the Canadian Mainline to crude oil service from natural gas service. The NEB also approved the toll methodology and tariff for the Keystone Pipeline.
The 3,456-kilometre (2,148-mile) Keystone Pipeline will transport crude oil from Hardisty, Alberta, to U.S. Midwest markets at Wood River and Patoka, Illinois, and to Cushing, Oklahoma. The Canadian portion of the project involves the conversion of approximately 864 kilometres (537 miles) of existing Canadian Mainline pipeline facilities from natural gas to crude oil transmission service and construction of approximately 373 kilometres (232 miles) of pipeline, pump stations and terminal facilities at Hardisty, Alberta. The U.S. portion of the project includes construction of approximately 2,219 kilometres (1,379 miles) of pipeline and pump stations.
The NEB approval relates to the initial design of the project to deliver 435,000 barrels per day to Patoka and Wood River. Subsequent to initial design, Keystone held a successful Open Season to expand the project to 590,000 barrels per day and extend its reach to Cushing. The Cushing delivery point is expected to be in service in late 2010. Keystone expects to file an application with the NEB in the fourth quarter of 2007 for approval to construct the expanded facilities. Applications for U.S. regulatory approvals at federal and state levels are proceeding.
Read more about the Keystone Oil Pipeline project.
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