BY JUDY MCKINNON
CALGARY -- TransCanada said that it has reached binding
shipping agreements allowing it to move forward on plans for
a pipeline and terminal facility in Alberta that will help
link Canadian crude oil resources in the province to markets
in eastern Canada and the United States.
It's the latest in a series of small and large moves by
Canada's energy industry to boost crude shipments. A lack of
pipeline capacity to the United States has pushed executives
and government officials to propose a number of alternative
routes to both the east and west coasts of Canada.
TransCanada said it plans to build a 125 mile pipeline
connecting Alberta's Edmonton region to facilities
in Hardisty, Alberta,
and a terminal in the Heartland industrial area norh of
Edmonton. The facilities
are part of
TransCanada's broader plans to eventually ship more Alberta
crude to Canada's east coast, the company said.
It said the project
s are expected to cost
about $893 million combined, and could be in service during
the second half of 2015.
TransCanada, which is awaiting final United States approval
for its proposed Keystone XL oil pipeline, said the proposed
Heartland pipeline could transport up to 900,000 bopd, while
the terminal is expected to have storage capacity for up to
1.9 MMbbl of crude.
"With Alberta oil production project
ed to increase by almost 3
MMbopd over the next 15 years, it is important to have the
right infrastructure in place to move these resources safely
and reliably to market at the right time" Alex Pourbaix,
TransCanada's president of energy and oil pipelines, said in
TransCanada said it plans to file a regulatory application
for the terminal this spring and a separate application for
the pipeline in the fall.
Dow Jones Newswires