Name of the Project
Keystone pipeline Gulf Coast expansion (Keystone XL) 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 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%.

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
A day after US President Donald Trump signed executive actions clearing the way for contentious oil pipelines to be built in the US, TransCanada resubmitted its Presidential Permit application to the US Department of State for approval of the KXL pipeline.

This is the permitting avenue TransCanada previously persued that was ultimately rejected by former President Barack Obama on environmental grounds, ending a drawn out and highly politicised battle to build the conduit.

"This privately funded infrastructure project will help meet America's growing energy needs, as well as create tens of thousands of well-paying jobs and generate substantial economic benefit throughout the US and Canada," TransCanada president and CEO Russ Girling has said in a statement.

He argues that the KXL will strengthen US energy security and is in the national interest. The project is considered an important new piece of US infrastructure that will secure access to an abundant energy resource produced by a neighbour that shares a commitment to a clean and healthy environment.

The KXL project will be subject to enhanced standards and utilisation of the most advanced technology.

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.