CALGARY, ALBERTA, Mar. 12, 2010 (Marketwire) -- TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today announced it has received a permit from the South Dakota Public Utilities Commission (PUC) to construct and operate the South Dakota portion of the Keystone Gulf Coast Expansion Pipeline project.
TransCanada filed its permit application with the PUC in March 2009. The PUC conducted public input hearings across the project area and a formal evidentiary hearing was held in November 2009. The PUC order attaches a number of conditions to construction and operation of the pipeline in the State. The order finds that the project, if constructed and operated in accordance with those conditions, will not significantly impact the environment or the health, safety or welfare of those in the area and satisfies all applicable requirements of the State of South Dakota.
The proposed project is an approximate 1,980-mile, 36-inch crude oil pipeline that would begin at Hardisty, Alberta and extend southeast through Saskatchewan, Montana, South Dakota and Nebraska. It would incorporate a portion of the Keystone Pipeline to be constructed through Kansas to Cushing, Oklahoma before continuing through Oklahoma to a delivery point near existing terminals in Nederland, Texas to serve the Port Arthur, Texas marketplace.
When completed, the Keystone expansion project will increase the commercial design of the Keystone Pipeline system from 590,000 barrels per day to approximately 1.1 million barrels per day. The US$12 billion system is 83 per cent subscribed with long-term commitments of 910,000 barrels per day for an average term of approximately 18 years. The Keystone Pipeline System will link a reliable and stable source of Canadian crude oil with the largest refinery market in the world.
The proposal also received approval from the federal regulators in Canada on March 11, 2010. Applications for other U.S. regulatory approvals are proceeding and decisions are anticipated during the fourth quarter of 2010. Construction is expected to begin in the first quarter of 2011 and we expect deliveries of crude oil to the U.S. Gulf Coast to begin in the first quarter of 2013.
With more than 50 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and oil pipelines, power generation and gas storage facilities. TransCanada's network of wholly owned natural gas pipelines extends more than 60,000 kilometres (37,000 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with approximately 380 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, over 11,700 megawatts of power generation in Canada and the United States. TransCanada is developing one of North America's largest oil delivery systems. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. For more information visit: www.transcanada.com.
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