After completing a successful open season for the Keystone Hardisty Terminal project, TransCanada says it has sufficient firm commitments from parties interested in accessing the new terminal at the starting point of TransCanada’s Keystone Pipeline System.
“The open season held earlier this year for the Keystone Hardisty Terminal was very successful and confirms strong demand from western Canadian producers for new infrastructure to allow them to move crude oil into the Keystone System,” said Russ Girling, TransCanada’s president and CEO.
Binding long-term commitments in excess of 500,000 bpd were received during the open season, leading to the opportunity to expand the proposed 2 MMbbls of crude oil batch accumulation tankage and pipeline infrastructure to a 2.6 MMbbl terminal. TransCanada intends to proceed with the necessary regulatory applications for approvals to construct and operate the terminal at Hardisty, Alberta. Subject to regulatory approvals, the project is expected to be in service by late 2014 and cost $275 million.
The Keystone Pipeline System is an operational 2,154-mile pipeline that is delivering over 500,000 bpd of crude to markets and refineries in the U.S. Midwest and Cushing, OK.
On May 4, TransCanada applied to the U.S. Department of State for a Presidential Permit for the Keystone XL Pipeline from the U.S./Canada border in Montana to Steele City, NB. TransCanada expects to receive the Permit and begin construction of Keystone XL in early 2013 with completion slated for late 2014 or early 2015.