Binding Open Season begins on proposed Keystone oil pipeline
CALGARY, Alberta – November 4, 2005 – (TSX: TRP) (NYSE: TRP) TransCanada Corporation (TransCanada) today announced the start of a binding Open Season process for the proposed Keystone oil pipeline. A successful non-binding Expression of Interest phase took place in April 2005 and indicated sufficient volume support for the Keystone Project.
Valued at approximately US$2.1 billion, the Keystone pipeline is intended to transport approximately 435,000 barrels per day of crude oil from Hardisty, Alberta, to Patoka, Illinois, through a 1,840-mile (2,950 kilometre) pipeline system. In addition to approximately 1,100 miles (1,700 kilometres) of new pipeline construction in the United States, the Canadian portion of the proposed project includes the construction of approximately 220 miles (355 kilometres) of new pipeline and the conversion of approximately 540 miles (870 kilometres) of existing TransCanada pipeline facilities from natural gas to crude oil transmission.
The Open Season process follows an announcement on November 3 by TransCanada and ConocoPhillips Pipe Line Company (CPPL), a wholly owned subsidiary of ConocoPhillips Company, that the two companies have entered into a Memorandum of Understanding which commits ConocoPhillips Company to ship crude oil on the proposed Keystone oil pipeline and gives CPPL the right to acquire up to a fifty per cent ownership interest in the pipeline, subject to certain conditions being met.
During the Open Season period, which expires at noon MST on December 1, 2005, TransCanada will accept binding bids from shippers for transportation capacity. In addition, TransCanada is requesting responses on two non-binding Expressions of Interest relating to potential extensions to the Keystone Project. The first Expression of Interest is requesting shipper interest in having an additional Keystone originating point in the Fort Saskatchewan area of Alberta. The second Expression of Interest is proposing an extension of the Keystone system to Cushing, Oklahoma.
Interested shippers are invited to contact Robert Jones, Director, TransCanada Keystone Pipeline Project, at 403.920.2033 for more information. The TransCanada Keystone website (www.transcanada.com/keystone) provides additional information on Keystone and a summary of the Notice of Open Season document.
TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure. TransCanada’s network of approximately 41,000 kilometres (25,600 miles) of pipeline transports the majority of Western Canada’s natural gas production to key Canadian and U.S. markets. A growing independent power producer, TransCanada owns, or has interests in, approximately 6,000 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.
FORWARD LOOKING INFORMATION
Certain information in this news release is forward-looking and is subject to important risks and uncertainties. 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, competitive factors in the pipeline and power industry sectors, and the current economic conditions in North America. For additional information on these and other factors, see the reports filed by TransCanada with Canadian securities regulators and with the United States Securities and Exchange Commission. TransCanada disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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