Keystone Pipeline Project Moving Toward Completion

November 2010, Vol. 65 No. 11

Keystone’s Cushing activity is considered part of Phase II of the overall project. Extending 295 miles from Steele City, NE to Cushing, the 36-inch pipeline is in the final stages of construction. The extension will connect to storage and distribution facilities at Cushing, a major crude oil marketing/refining and pipeline hub.

In addition, this phase will include construction of the four pump stations and an expansion of additional pumping units for 22 of the 23 pump stations as part of Phase I in the U.S. In Canada, Phase II also will include construction of seven pump stations and additional pumping units for seven of the 16 initial pump stations built to support Phase I.

Labor agreement for Keystone XL Pipeline
In a related development, TransCanada Corporation recently announced a Project Labor Agreement for a significant portion of U.S. construction of the proposed US$7 billion Keystone Gulf Coast Expansion Pipeline Project (Keystone XL). The agreement will provide TransCanada with a trained and ready workforce in the U.S. to construct Keystone XL. During construction, the project is expected to create over seven million hours of labor and over 13,000 new jobs for American workers.

The Project Labor Agreement is with the Laborers International Union of North America, the International Brotherhood of Teamsters, the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, AFL-CIO, the International Union of Operating Engineers and the Pipeline Contractors Association.

"The proposed Keystone XL pipeline will have a significant impact on the North American economy through the thousands of manufacturing and construction jobs it is creating," says Russ Girling, TransCanada president and chief executive officer. "This project is entirely paid for with private sector dollars and is shovel ready."

"It's our job to weld sections of Keystone Pipeline that will extend across several states and transport hundreds of thousands of barrels of oil daily for decades to come," said William Hite, general president of the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, AFL-CIO.

"This project will also play an important role in linking a secure and growing supply of Canadian crude oil with the largest refining markets in the United States, significantly improving North American energy security," added Girling.