Keystone’s Cushing Extension Begins Deliveries To Oklahoma

February 2011, Vol. 238 No. 2

On February 8, 2011, the second phase of TransCanada’s US$12 billion Keystone Pipeline system began delivering crude to Cushing, OK.

The second phase is a new, 298-mile extension from Steele City, NE to Cushing, and an increase in Keystone’s nominal capacity to 591,000 bpd, of which 530,000 bpd is contracted.

“This is a significant development for TransCanada as the Keystone pipeline will play an important role in linking a secure and growing supply of Canadian crude oil with America’s largest refining markets, greatly improving North American energy security,” says Russ Girling, TransCanada president and chief executive officer.

The next phase of expansion for the Keystone Pipeline system is the proposed U.S. Gulf Coast Expansion (Keystone XL) project, a 1,661-mile, 36-inch crude oil pipeline that will begin at Hardisty, Alberta and extend southeast through Saskatchewan, Montana, South Dakota and Nebraska. The pipeline will then continue on through Oklahoma and Texas to delivery terminals near Port Arthur, TX, to serve U.S. Gulf Coast refineries.
In other news, TransCanada Corporation received sufficient contractual support to proceed with its Cushing Marketlink project which will have the ability to provide transportation of 150,000 bpd of U.S. crude from Cushing, OK to the U.S. Gulf Coast.

“This project will create a direct link between Cushing, the largest crude oil storage hub in the world, and North America’s largest refinery complex, the U.S. Gulf Coast,” said Russ Girling, TransCanada’s president and CEO. “Combined with our Bakken Marketlink project, these two projects will have the pipeline capacity to transport up to 250,000 bpd of crude oil production by connecting to facilities that form part of the Keystone XL system.”

The project is expected to be in service in the first quarter of 2013, subject to the receipt of necessary regulatory approvals.