The Keystone Pipeline (see below) is designed to transport reliable North American oil supplies to meet rising US demand. “During the upcoming open-house sessions, we hope to hear about local issues we should consider as we examine routes and develop project plans,” said Keystone Pipeline project manager Brian Peterson. “Public input is an integral part of our planning process and we encourage all interested parties to attend an open house.”
TransCanada’s officials have already consulted with more than 400 public officials and community leaders while designing the pipeline route, and have the goal of making it environmentally friendly in traversing primarily agricultural land. After running east through the Canadian provinces of Alberta, Saskatchewan and Manitoba, the pipeline would run 1,700km through the US, with the expected route to cross the eastern Dakotas and into western Iowa, then proceed across northern Missouri into Illinois. South Dakota Public Utilities Commissioner Bob Sahr said the project would create hundreds of jobs in the state. “These projects don’t come down the pike too often,” Sahr said. “Because it’s underground, you tend to have less landowner concern than you would with overhead power lines.”
One of the meetings will be held in Anthon, Iowa, and Anthon city clerk Ruth Groth said the underground placement would likely make the project more acceptable to rural people. The pipeline idea makes sense, Groth said, since it would be a relatively safe way to transport the crude oil.
The latest step in the advance of the pipeline project involves a recently-signed memorandum of understanding committing ConocoPhillips to ship crude oil via Keystone. All told, about 400,000brl/d of crude oil are expected to be transported in the 30-in diameter pipeline. Forthcoming plans include preparing major regulatory applications in the Spring, obtaining licenses in the Autumn 2006, with construction to begin in 2008. In order to complete the project, some natural gas lines in Canada will have to be converted to carry oil.
“We are pleased that ConocoPhillips is joining us on the Keystone project to connect a reliable Canadian oil supply to high-demand energy markets in the US Midwest through a unique, cost-effective pipeline proposal. Our proposed association with ConocoPhillips Pipe Line Co offers shippers the strengths of our two companies with proven expertise in building and operating energy infrastructure,” said Hal Kvisle, TransCanada’s chief executive officer.
Valued at approximately $2.1 billion, the Keystone pipeline is intended to transport approximately 435,000brl/d of crude oil from Hardisty, Alberta, to Patoka, Illinois through a 2,950-km pipeline system. In addition to approximately 1,700km of new pipeline in the US, the Canadian portion of the proposed project includes the construction of approximately 355km of new pipeline and the conversion of approximately 870km of existing TransCanada pipeline facilities from gas to crude oil transmission. Depending on shipper interest and support, there is potential for extensions at each end of the pipeline. The Keystone pipeline, upon receipt of the necessary shipper support and appropriate regulatory approvals in Canada and the United States, is expected to be in service in 2009.
TransCanada’s network of approximately 25,600 miles (41,000 kilometres) of pipeline transports the majority of Western Canada’s natural gas production to key Canadian and U.S. markets. A growing independent power producer, TransCanada owns, or has interests in, approximately 6,000 megawatts of power generation in Canada and the United States.