Binding Open Season begins on proposed Keystone oil pipeline

abarrelfullabarrelfull wrote on 02 Mar 2012 11:48

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November 4, 2005

(TSX: TRP) (NYSE: TRP) TransCanada Corporation (TransCanada) today announced the start of a binding Open Season process for the proposed Keystone oil pipeline. A successful non-binding Expression of Interest phase took place in April 2005 and indicated sufficient volume support for the Keystone Project.

Valued at approximately US$2.1 billion, the Keystone pipeline is intended to transport approximately 435,000 barrels per day of crude oil from Hardisty, Alberta, to Patoka, Illinois, through a 1,840-mile (2,950 kilometre) pipeline system. In addition to approximately 1,100 miles (1,700 kilometres) of new pipeline construction in the United States, the Canadian portion of the proposed project includes the construction of approximately 220 miles (355 kilometres) of new pipeline and the conversion of approximately 540 miles (870 kilometres) of existing TransCanada pipeline facilities from natural gas to crude oil transmission.

The Open Season process follows an announcement on November 3 by TransCanada and ConocoPhillips Pipe Line Company (CPPL), a wholly owned subsidiary of ConocoPhillips Company, that the two companies have entered into a Memorandum of Understanding which commits ConocoPhillips Company to ship crude oil on the proposed Keystone oil pipeline and gives CPPL the right to acquire up to a fifty per cent ownership interest in the pipeline, subject to certain conditions being met.

During the Open Season period, which expires at noon MST on December 1, 2005, TransCanada will accept binding bids from shippers for transportation capacity. In addition, TransCanada is requesting responses on two non-binding Expressions of Interest relating to potential extensions to the Keystone Project. The first Expression of Interest is requesting shipper interest in having an additional Keystone originating point in the Fort Saskatchewan area of Alberta. The second Expression of Interest is proposing an extension of the Keystone system to Cushing, Oklahoma.

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