TransCanada said Wednesday that it successfully concluded the open season for the Keystone Hardisty Terminal project in Canada.
Sufficient firm commitments were secured from parties interested in accessing the new terminal at the starting point of TransCanada's proposed Keystone XL pipeline system in Hardisty, Alberta, the company said.
"The open season held earlier this year for the Keystone Hardisty Terminal was very successful and confirms strong demand from Western Canadian producers for new infrastructure to allow them to move crude oil into the Keystone system," said Russ Girling, TransCanada's CEO.
There is overwhelming industry support to transport crude oil safely and reliably to markets across North America."
TransCanada said it had received binding, long-term commitments in excess of 500,000 bpd during the open season, leading it to expand the proposed 2 million bbl of crude oil batch accumulation tankage and pipeline infrastructure to a 2.6 million bbl terminal.
Going forward, TransCanada intends to proceed with the necessary regulatory applications for approvals to construct and operate this terminal at Hardisty, Alberta, it said.
Subject to regulatory approvals, the project is expected to be in service by late 2014 and cost approximately $275 million.
The Keystone system is an operational 3,467-kilometre (2,154-mile) pipeline that is delivering over 500,000 bpd of crude oil to markets and refineries in the US Midwest and Cushing, Oklahoma.
On May 4, TransCanada applied to the US Department of State for a presidential permit for the proposed Keystone XL pipeline from the US/Canada border in Montana to Steele City, Nebraska.
TransCanada says it expects to win approval on the permit and begin construction of Keystone XL in the first quarter of 2013, with completion slated for late 2014 or early 2015.