TransCanada receives NEB approval to construct and operate the Keystone Oil Pipeline
CALGARY, Alberta – September 21, 2007 – TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) today announced the National Energy Board (NEB) has approved an application by TransCanada Keystone Pipeline GP Ltd. (Keystone) to construct and operate the Canadian portion of the Keystone Pipeline project, including converting a portion of the Canadian Mainline to crude oil service from natural gas service. The NEB also approved the toll methodology and tariff for the Keystone Pipeline.
“This approval is another major milestone for the Keystone Pipeline project. We’ve made significant financial commitments with suppliers, which will allow the project to proceed with construction in early 2008 and meet an in-service date of fourth quarter 2009,” says Hal Kvisle, TransCanada president and chief executive officer.
The 3,456-kilometre (2,148-mile) Keystone Pipeline will transport crude oil from Hardisty, Alberta to U.S. Midwest markets at Wood River and Patoka, Illinois and to Cushing, Oklahoma. The Canadian portion of the project involves the conversion of approximately 864 kilometres (537 miles) of existing Canadian Mainline pipeline facilities from natural gas to crude oil transmission service and construction of approximately 373 kilometres (232 miles) of pipeline, pump stations and terminal facilities at Hardisty, Alberta. The U.S. portion of the project includes construction of approximately 2,219 kilometres (1,379 miles) of pipeline and pump stations.
The NEB approval relates to the initial design of the project to deliver 435,000 barrels per day to Patoka and Wood River. Subsequent to initial design, Keystone held a successful Open Season to expand the project to 590,000 barrels per day and extend its reach to Cushing. The Cushing delivery point is expected to be in service in late 2010. Keystone expects to file an application with the NEB in the fourth quarter of 2007 for approval to construct the expanded facilities. Applications for U.S. regulatory approvals at federal and state levels are proceeding.
To view a map of the proposed pipeline route and obtain other information about the Keystone Pipeline, please visit the project web page at www.transcanada.com/keystone.
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 pipelines, power generation, gas storage facilities, and projects related to oil pipelines and LNG facilities. TransCanada’s network of wholly owned pipelines extends more than 59,000 kilometres (36,500 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 360 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, approximately 7,700 megawatts of power generation in Canada and the United States. TransCanada’s common shares trade on the Toronto and New York stock exchanges under the symbol TRP.
(Note: All financial figures are in Canadian dollars unless noted otherwise.)
This news release may contain certain information that is forward-looking and is subject to important risks and uncertainties. The words "anticipate", "expect", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward looking information. All forward-looking statements are based on TransCanada’s beliefs and assumptions based on information available at the time such statements were made. The results or events predicted in this information may differ from actual results or events. Factors which could cause actual results or events to differ materially from current expectations include, among other things, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability and price of energy commodities, regulatory decisions, changes in environmental and other laws and regulations, competitive factors in the pipeline and energy industry sectors, construction and completion of capital projects, access to capital markets, interest and currency exchange rates, technological developments and the current economic conditions in North America. By its nature, such forward looking information is subject to various risks and uncertainties which could cause TransCanada's actual results and experience to differ materially from the anticipated results or other expectations expressed. For additional information on these and other factors, see the reports filed by TransCanada with Canadian securities regulators and with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on this forward looking information, which is given as of the date it is expressed in this news release or otherwise, and TransCanada undertakes no obligation to update publicly or revise any forward looking information, whether as a result of new information, future events or otherwise, except as required by law.
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