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TransCanada secures Keystone XL contracts

  • Spanish Market: Crude oil
  • 18/01/18

TransCanada has secured about 500,000 b/d of firm, 20-year commitments for its proposed 830,000 b/d Keystone XL pipeline after a successful open season.

Shipper interest in the project remains strong and TransCanada "will look to continue to secure additional long-term contracts," the company said today.

The shipper commitments, combined with a recent Nebraska approval of the pipeline route, position the project to move forward, TransCanada said.

But hurdles remain for the long-delayed pipeline.

Landowners are contesting the 20 November decision by the Nebraska Public Service Commission to approve the route. Dozens of Nebraska landowners have filed a notice of appeal to the Nebraska Court of Appeals, keeping the resistence alive for now.

The $8bn Keystone XL would transport crude from Alberta's oil sands to Steele City, Nebraska, which is already linked to Cushing, Oklahoma, and the southeast Texas coast.

TransCanada first proposed Keystone XL in 2008 but it was delayed repeatedly. The administration of US President Barack Obama in 2015 blocked Keystone XL after years of review, citing environmental concerns.

The project was revived last year, receiving a cross-border permit from the Trump administration in March 2017.

The Nebraska Public Service Commission in November voted 3-2 to approve a Keystone XL route through the state, but not along TransCanada's preferred 275-mile (443km) route. Rather it approved "a mainline alternative route." Nebraska regulators last month rejected TransCanada's request to submit an amended application to address some issues related to the alternative route.

Opponents to the project say that the environmental impacts of the alternative route were not properly examined by state and federal agencies.

TransCanada said today that the approved route was based on a comprehensive review of evidence submitted by all parties in the hearing process as well as state agencies to ensure it has a minimal impact to the public and to Nebraska's natural resources.

The company also said it is continuing outreach in the communities where the pipeline will be built and is working with landowners to obtain the necessary easements for the approved route.

Construction preparation has started and will increase as the permitting process advances throughout 2018, with primary construction expected to begin in 2019, the company said.


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