“This approval is another major milestone for the Keystone pipeline project. We’ve made significant financial commitments with suppliers, which will allow the project to proceed with construction in early 2008 and meet an in-service date of fourth quarter 2009,” Hal Kvisle, TransCanada’s president and chief executive officer, said in announcing the news on 21 September.
The 3,456-km Keystone pipeline will transport crude oil from Hardisty, Alberta, to US Midwest markets at Wood River and Patoka, Illinois, and to Cushing, Oklahoma. The Canadian portion of the project involves the conversion of approximately 864km of existing Canadian Mainline pipeline facilities from natural gas to crude oil transmission service, and the construction of approximately 373km of pipeline, along with pump stations and terminal facilities at Hardisty. The US portion of the project includes construction of approximately 2,219km of pipeline and pump stations.
The NEB approval relates to the initial design of the project to deliver 435,000brl/d to Patoka and Wood River. Subsequent to the initial design work, Keystone held a successful Open Season to expand the project to 590,000brl/d, and extend its reach to Cushing. The Cushing delivery point is expected to be in service in late 2010. Keystone expects to file an application with the NEB in the fourth quarter of 2007 for approval to construct the expanded facilities. Applications for US regulatory approvals at federal and state levels are proceeding.