Name of the Project
Keystone pipeline Gulf Coast expansion (KXL) project.
Location
Canada and the US.
Client
TransCanada Corporation (TransCanada).
Project description
The project will enable Canadian and US oil producers to have more access to the large refining markets in the American Midwest and along the US Gulf Coast.
The project proposes a 1 897 km, 36” diameter crude oil pipeline, beginning in Hardisty, Alberta, and extending south to Steele City, Nebraska, in Canada and the US respectively. This pipeline is a critical infrastructure project for the energy security of the US.
Along with transporting crude oil from Canada, the KXL pipeline will also support the significant growth of crude oil production in the US from producers in the Bakken region of Montana and North Dakota.
The pipeline will have capacity to transport 830 000 bbl/d of oil to Gulf Coast and Midwest refineries, reducing American dependence on oil from Venezuela and the Middle East by up to 40%.
Jobs to be Created
Independent forecasts by the US Department of State estimate that KXL will support tens of thousands of direct and indirect jobs and associated income during construction and contribute about $3.4-billion to US gross domestic product.
Value
$8-billion.
Duration
TransCanada expected to have the pipeline in service by 2015, but it has been delayed.
Latest developments
Following the Nebraska Public Service Commission’s (PSC’s) approval of an alternative route for the KXL pipeline, TransCanada has petitioned the state to reconsider its decision.
TransCanada lodged a motion with the Nebraska PSC on November 17, requesting it to reconsider its order, seeking clarification of certain questions raised in the PSC order.
TransCanada cited the 8 km longer route and one additional pumping station as negatives, but the PSC concluded that the Alternative Mainline Route also impacted on fewer kilometres of the ranges of threatened or endangered species, and also comprised fewer crossings of farmland, rivers and other infrastructure such as state highways and natural gas facilities.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Keystone XL has been delayed, owing to the rejection of TransCanada’s application for a permit to build and operate the project.
Contact Details for Project Information
TransCanada, tel +1 866 717 7473 or email keystone@transcanada.com.