Monday, January 24, 2011

TransCanada to Transport U.S. Crude Oil to Market

TransCanada Corporation (TransCanada) (TSX:TRP) (NYSE:TRP) today announced it has concluded a successful open season for the Bakken Marketlink Project which will deliver U.S. crude oil from Baker, Montana to Cushing, Oklahoma. Bakken Marketlink will transport U.S. crude oil production to market using pipeline facilities that form part of the Keystone XL system. The project has secured a total of 65,000 barrels per day (Bbl/d) of firm, term contracts. The Bakken formation is one of the fastest growing crude oil plays in the United States.

"These agreements are a clear indication of producer support for the first direct link between the prolific Bakken crude oil producing region in the Williston Basin and key U.S. markets near Cushing, Oklahoma and the U.S. Gulf Coast, the largest refining market in North America," said Russ Girling, TransCanada's president and chief executive officer. "This project will provide U.S. producers with an alternative and competitive way of bringing their crude oil to market and supports American workers who produce the oil and American companies who will refine it."

Keystone XL's proximity to the key Bakken crude oil producing regions within the Williston Basin uniquely positions TransCanada to provide an effective market access alternative for U.S. Bakken crude oil production to reach Cushing, Oklahoma and the U.S. Gulf Coast.

Crude oil forecasts for the U.S. Bakken region continue to grow with production expected to increase by approximately 200,000 - 300,000 bpd by 2015. The Bakken Marketlink Project will help to relieve pipeline capacity constraints in the Williston Basin and will support forecasted growth in U.S. domestic crude oil production.

Keystone XL has extensive support south of the border and will reduce America's dependence on crude oil from Venezuela and the Middle East by up to 40 per cent. The expansion will also create 20,000 jobs for American workers and inject $20 billion into the U.S. economy.

The project is expected to be in service in the first quarter of 2013, subject to the receipt of necessary regulatory approvals.

1 comment:

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