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 projects 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 projected 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 a statement.
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