Keystone XL takes a baby step forward
TransCanada has confirmed it has secured 500,000 bbl/day of firm 20-year commitments on the Keystone XL pipeline, successfully concluding open season on the line. Included in those barrels are 50,000 bbl/day of crude from Alberta's Bitumen Royalty-in-Kind program.
Keystone XL is designed to transport 830,000 bbl/day of crude from Alberta and North Dakota into the Gulf Coast for refining and export. About 12% of the line's capacity (100,000 bbl/day) is reserved for light Bakken crude from North Dakota. The company says interest in the project remains strong and it looks forward to securing additional long-term contracted volumes.
However, TransCanada stopped short of a positive Final Investment Decision, and has yet to provide updated capital costs or an expected in-service date. The company says it is continuing to work with landowners along the right-of-way to "obtain the necessary easements for the approved route." Construction preparation has already begun, with "primary construction" expected to start in 2019.
TransCanada CEO Russ Girling took the time to thank President Trump, Alberta Premier Rachel Notley, the State of Nebraska and various labour unions. Prime Minister Trudeau was conspicuously absent from the list.