U.S. State Department to Issue Permit for $5.2B Pipeline from Canada

The State Department announced yesterday that it will issue a permit in 15 days for a $5.2 billion crude oil pipeline from Saskatchewan, Canada, through Manitoba, North Dakota, South Dakota, Nebraska, Kansas and Missouri to refineries in Patoka, Ill., and Cushing, Okla.

The 2,148-mile pipeline, which would be jointly owned by TransCanada Corp. and ConocoPhillips, would be able to carry 590,000 barrels of oil per day by 2010, TransCanada spokeswoman Cecily Dobson said.

Canadian regulators already have approved the route through Canada.

Because it crosses the U.S.-Canadian border, the project requires a presidential permit from the State Department. The department issued a statement in January saying the pipeline would result in limited environmental harm.

Elizabeth Orlando, the State Department's project manager working with the pipeline, said earlier that the review of the project was the largest in the agency's history.

Dobson said the company plans to start work on the pipeline this spring and complete it in 2009. The company is expecting crude to be piped to the refinery in Illinois late next year and to the refinery in Oklahoma a year later, she said.