Harvey Damage Prompts TransCanada To Extend Pipeline Open Season
CALGARY, Alberta, Sept 6 (Reuters) - TransCanada Corp will extend the open season on its Keystone pipeline system by a month because of the unprecedented flooding and damage caused by Hurricane Harvey slamming into the Gulf Coast region in late August, the company said on Wednesday.
Shippers will now have until Oct. 26 to sign up for committed capacity on the existing Keystone and proposed Keystone XL pipelines that will carry crude from Alberta's oil sands to Cushing, Oklahoma and the Gulf Coast.
The open season, which was launched on July 27, was originally scheduled to last until Sept. 28.
Harvey forced a quarter of U.S. refining capacity offline, shut down key liquids pipelines and disrupted crude production as it swept through the heart of the country's energy industry nearly two weeks ago.
In a statement TransCanada said it was extending the open season due to the "historic flooding and catastrophic impacts to Houston and parts of the U.S. Gulf Coast".
While the original 590,000 barrel per day Keystone pipeline is already operating, the proposed 830,000 bpd Keystone XL line has been delayed for years after the Obama administration denied it a presidential permit.
U.S. President Donald Trump approved Keystone XL in March but two other major crude export pipelines are now also in progress, prompting some industry players to question whether TransCanada's new line would be needed.
Chief Executive Russ Girling said in May lower oil prices and alternative export routes were "complicating" negotiations over shipper commitments, but traders in Calgary said the open season extension appeared to be the result of Harvey impacts rather than a lack of demand for the route.
(Reporting by Nia Williams; Editing by Marguerita Choy)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension