TransCanada's Keystone pipeline reaches milestone in U.S.

COMMENT: Oblivious so far to the NRDC campaign to target the North American airlines which are buying fuel produced from oilsands bitumen (see Environmentalists target oilsands customers), TransCanada Corp's Keystone pipeline project not surprisingly leaps another regulatory hurdle.

Globe and Mail
January 11, 2008

CALGARY — TransCanada Corp. says its Keystone pipeline partnership has received a favourable assessment from U.S. regulators that asserts the project will have “limited” negative effect on the environment.

A final environmental impact statement from the U.S. Department of State has found the pipeline project and its Cushing extension “would result in limited adverse environmental impacts,” TransCanada said Friday.

Keystone is slated to transport crude oil along a 3,456-kilometre system from Hardisty, Alta., to U.S. Midwest markets in Illinois and to Cushing, Okla.

“This outcome is another significant milestone in advancing the Keystone Pipeline project,” TransCanada president and chief executive Hal Kvisle said in a statement.

“We plan to begin construction in second quarter 2008 to achieve an in-service date of fourth quarter 2009 in order to move the growing supply of Canadian crude oil to key U.S. markets.”

TransCanada expects to receive a presidential permit that will authorize construction and operation of facilities at the U.S.-Canada border crossing in mid-February.

Applications for other U.S. regulatory approvals are expected in the first quarter of 2008.

The $5.2-billion (U.S.) project will see main pipeline facilities in Canada converted from natural gas to crude oil transmission and the construction of about 2,200 kilometres of pipeline and pump stations in the United States.

TransCanada has said the system will be capable of delivering 435,000 barrels per day initially, expanding to 590,000 barrels per day on completion of the Cushing extension in 2010.

Shares in the company were down 11 cents at $39.95 in early morning trading on the Toronto Stock Exchange.