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TransCanada considers new plans

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hypocritexposer

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TransCanada Corp. is considering building U.S. portions of its Keystone XL pipeline and later seeking approval of an Alberta link to circumvent the Obama administration's rejection of the $7-billion project.

There is no requirement for a presidential permit to lay pipe anywhere in the United States, provided the line doesn't extend across the border into Canada.

On the table is a segment between the oversupplied oil storage hub of Cushing, Okla., and Gulf Coast refining centres in Texas, as well as a longer line from Montana to the Gulf Coast, executives said Thursday.

"I think that clearly, with yesterday's decision, we are now open to amending or changing our plans to building this in segments," TransCanada chief executive Russ Girling told an investor conference in Whistler, B.C. "As we've said before, that's dependent on the interest of our shippers in doing that."

Building an Oklahoma-to-Texas section alone would cost TransCanada $2 billion, said Girling, who told investors the company has already spent $1.9 billion on the Keystone XL project.

Alex Pourbaix, TransCanada's president of energy and oil pipelines, said the company will also take the next few weeks to examine carving out a longer portion of the project to connect oil from the Bakken shale in Montana with the Gulf Coast.

TransCanada would later apply for a presidential permit to link the line with the oil-sands and complete Keystone XL as originally envisioned, Pourbaix said.

"We believe there may be the potential to accelerate the construction of some elements of the pipeline."

Girling said a new application for presidential approval of the entire 2,700-kilometre Alberta-to-Texas line would include a detour in Nebraska around ecologically sensitive land, which the company is working on with state officials. An "expedited" review should amount to a decision in early 2013, he said, leading to a late 2014 startup of the 830,000-barrel-per-day line. U.S. State Department officials have not committed to expediting review of any future application.

Oil producers and refining firms are still contractually obligated to Keystone XL, Girling said, despite U.S. President Barack Obama's Wednesday denial, which the president blamed on Republicans in Washington for requiring in December that a decision be made within 60 days.

Bill Day, a spokesman for Valero Energy Corp., said Valero is counting on heavy Canadian crude for its Gulf Coast refineries, where volumes from Mexico and South America are declining.

Many Coast refineries are tooled to receive heavy crude from Canada, not the light oil TransCanada would initially ship from Montana if it were to build that segment first. TransCanada can deliver 591,000 barrels per day of Canadian oil to Cushing on its existing Keystone pipeline.

A TransCanada line from Cushing to the Gulf Coast would compete with the Seaway pipeline reversal proposed by rival Enbridge Inc. and its partner Enterprise Products Partners LP. Seaway is scheduled to start delivering 150,000 barrels of oil per day from Cushing to the Gulf Coast on June 1, Enbridge CEO Pat Daniel said at the Whistler conference.

The Seaway line would transport up to 450,000 barrels per day by year end, he said, noting the companies are now gauging shipper support to boost capacity by twinning the line.

In his rejection of Keystone XL, Obama committed to work with the oil and gas industry on potentially developing an oil pipeline from Cushing to the Gulf of Mexico.

Obama's comments must be viewed as a "red herring," during the preelection season, said Kenneth Green, resident scholar at the Washington based American Enterprise Institute for Public Policy Research. "We are in the silly season. Every single word that his administration says has to be viewed as a campaign tactic."

The International Energy Agency predicts storage facilities in Cushing will gain another seven million to eight million barrels of capacity in 2012 to cope with a glut in supply that has had North American crudes trading at a discount to globally linked crudes for more than a year.

The price spread between West Texas Intermediate and Brent benchmarks eats into the profits of energy companies and curbs revenues for governments that collect royalties on oil production.

"Today, the differential between a similar crude in the mid-continent and the Gulf Coast is $10 or $11, but at times in 2011 that differential was as wide as (nearly) $30 a barrel," said Jackie Forrest, global oil director at energy consulting firm IHS CERA.

Even if Enbridge twins Seaway and Keystone XL goes ahead, more pipeline capacity will be needed by 2019 between Cushing and the Gulf Coast, as oilsands production and U.S. oil output ramps up, she said.

Read more: http://www.calgaryherald.com/business/TransCanada+considers+plans+Keystone+pipeline+built+stages+first/6024960/story.html#ixzz1k21Q6Wmg
 

hypocritexposer

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Construction of the US legs will begin in the spring


Proceeding with the southern leg of its Keystone XL route reflects TransCanada Pipeline’s confidence the rest of the controversial project will be approved by Washington, said company spokesmen.

On Monday, Calgary-based TransCanada announced it intends to begin building its Gulf Coast Project (GCP), the 765 km southern leg of the Keystone XL pipeline that will extend from Cushing, Okla. to the Gulf Coast.

Because it won’t cross any international boundaries, the $2.3 billion route needs no presidential approval but it does need a U.S. Army Corps. of Engineers permit.

http://www.calgarysun.com/2012/02/27/launch-of-southern-leg-of-pipeline-buoys-keystone-boosters
 

Steve

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its ok,. Obama has since blessed the project.. and right after the election he will approve it..



The new proposal by Calgary-based TransCanada does not require presidential approval because it does not cross a U.S. border. The 485-mile pipeline is expected to cost about $2.3 billion and be completed next year, pending approval by federal, state and local governments.

The Obama administration had suggested development of an Oklahoma-to-Texas line to alleviate an oil bottleneck at a Cushing, Okla., storage hub.

White House press secretary Jay Carney said Monday that Obama was pleased with TransCanada's latest announcement.

"Moving oil from the Midwest to the world-class, state-of-the-art refineries on the Gulf Coast will modernize our infrastructure, create jobs, and encourage American energy production," Carney said in a statement. "We look forward to working with TransCanada to ensure that it is built in a safe, responsible and timely manner, and we commit to take every step possible to expedite the necessary federal permits."

if the recession turned out to be a blessing in disguise.. Obama would be taking credit for causing it.. :? :shock: :???: :?


House Speaker John Boehner, R-Ohio, called the White House comments puzzling.

"The president is so far on the wrong side of the American people that he's now praising the company's decision to start going around him,"
 

Big Muddy rancher

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Had a interesting conversation with a friend that works for a pipeline company, They are going to pump Bakken oil north through a older 12 inch line from Montana up to Canada to get in the bigger pipeline system going south east. A little roundabout but I guess it's like the trains you can only go where there is track.
 

hypocritexposer

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Big Muddy rancher said:
Had a interesting conversation with a friend that works for a pipeline company, They are going to pump Bakken oil north through a older 12 inch line from Montana up to Canada to get in the bigger pipeline system going south east. A little roundabout but I guess it's like the trains you can only go where there is track.


OT is once again riding on our coat tails. :lol:
 

Tam

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hypocritexposer said:
Big Muddy rancher said:
Had a interesting conversation with a friend that works for a pipeline company, They are going to pump Bakken oil north through a older 12 inch line from Montana up to Canada to get in the bigger pipeline system going south east. A little roundabout but I guess it's like the trains you can only go where there is track.


OT is once again riding on our coat tails. :lol:

disgusting isn't it. :wink: :lol:
 

hypocritexposer

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Tam said:
hypocritexposer said:
Big Muddy rancher said:
Had a interesting conversation with a friend that works for a pipeline company, They are going to pump Bakken oil north through a older 12 inch line from Montana up to Canada to get in the bigger pipeline system going south east. A little roundabout but I guess it's like the trains you can only go where there is track.


OT is once again riding on our coat tails. :lol:

disgusting isn't it. :wink: :lol:


everything about OT is disgusting
 

hypocritexposer

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Clinton: No timeline yet for new Keystone pipeline decision
By Ben Geman - 02/28/12 03:54 PM ET

Secretary of State Hillary Clinton says it’s too early to say how quickly the State Department might decide on TransCanada Corp.’s revised plans to build the controversial Keystone XL oil sands pipeline.

The company plans to file a new application soon for the controversial pipeline to bring oil sands from Alberta to Gulf Coast refineries, following the Obama administration’s rejection of a permit for Keystone in January.

Clinton told the Senate Foreign Relations Committee Tuesday that she can’t yet estimate how quickly the review will occur.

“I think that a new application triggers a new review process under existing regulations,” she said. “We would be able to draw on some of the technical information that has already been compiled, but I think it is probably fair to say that until we get the application, until we actually have a chance to study it, we won’t be able to provide you information as to when a decision could be made.”

http://thehill.com/blogs/e2-wire/e2-wire/213093-clinton-no-timeline-yet-for-new-keystone-pipeline-decision


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