TransCanada: Keystone Oil Pipeline Achieves Key Milestone in U.S.

TransCanada Corporation announced TransCanada Keystone Pipeline, LP (Keystone) received the Final Environmental Impact Statement from the United States Department of State regarding the Keystone Pipeline project and Cushing extension, stating the pipeline would result in limited adverse environmental impacts.

The Final Environmental Impact Statement, a requirement for the Presidential Permit process, is the result of nearly two years of detailed analysis of the Keystone Pipeline project proposal by more than a dozen U.S. federal agencies and other interested stakeholders. A decision is anticipated to be issued in mid-February regarding Keystone's application for a Presidential Permit authorizing the construction and operation of the facilities at the U.S./Canada border crossing.

"This outcome is another significant milestone in advancing the Keystone Pipeline project," says Hal Kvisle, TransCanada president and chief executive officer. "We plan to begin construction in second quarter 2008 to achieve an in-service date of fourth quarter 2009 in order to move the growing supply of Canadian crude oil to key U.S. markets."

Keystone received National Energy Board approval last year for two major regulatory applications to construct and operate the Canadian portion of the project. Applications for other U.S. regulatory approvals at the state level are proceeding and decisions are expected to be received during the first quarter of 2008.

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. It is expected that on start-up in late 2009 Keystone will be capable of delivering 435,000 barrels per day to Wood River and Patoka, Illinois. It will be expanded to 590,000 barrels per day and extended to Cushing, Oklahoma in late 2010.