Name and location
Keystone pipeline Gulf Coast expansion (Keystone XL) project, Canada and the US.

Client
TransCanada Corporation (TransCanada).

Project description
The Keystone XL pipeline 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-inch-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 Keystone XL 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%.

Value
$8-billion.

Duration
TransCanada expects to have the pipeline in service by 2015.

Latest developments
US President Barack Obama has rejected Canadian energy infrastructure operator TransCanada’s proposed Keystone XL pipeline, ending a drawn out and highly politicised battle to build the conduit that would have transported Canadian bitumen to large refining markets in the American Midwest and along the US Gulf Coast.

Obama says the pipeline “would not serve the national interests of the US.

State Secretary John Kerry rejected a request by TransCanada to pause its review of the ‘presidential permit’ application for the Keystone XL pipeline earlier this week.

The proposed Keystone XL pipeline was rejected because it would have a negligible impact on US energy security; it would not lead to lower petrol prices for American consumers; the project’s long-term contribution to the economy would be marginal; the proposed project raised concerns about the impact on local communities, water supplies and cultural heritage sites; and that the proposed project would facilitate the movement of a “particularly dirty” source of fuel into the US.

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.