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Keystone XL Pipeline Delayed (Again)

Written by Sandy Williams


The proposed Keystone XL pipeline from Canada’s oil sand region to the Gulf Coast has been delayed until 2014. In a securities filing, TransCanada said it “no longer expects that the decision on the presidential permit required for the project will be made by year end and the corporation anticipates that its previously disclosed expected in-service date of 2013 will be similarly delayed.”  The company applied to the U.S. Department of State in 2012 for the permit that is required to build a cross-border pipeline.

The Keystone XL pipeline will travel 1,179 miles from Hardisty, Alberta to Steel City, Nebraska.  The 36” diameter pipeline will have a capacity of 830,000 barrels of oil per day, supporting Canadian producers as well as oil producers from the Bakken region of Montana and North Dakota.

From Steel City, additional TransCanada projects will extend the pipeline to Gulf Coast.  In an easterly direction, the Key Stone Pipeline would connect Hardisty with the Midwest ending near Patoka, Illinois. In all, the pipeline will extend nearly 2000 miles providing additional access to oil refineries in the Midwest and along the Gulf Coast.

TransCanada’s  $2.3 billion Gulf Coast Pipeline Project is currently underway and is expected to be completed near the end of 2013.

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