Keystone Pipeline Project Moving Toward Completion

November 2010, Vol. 65 No. 11

The Keystone expansion project is a planned 1,959-mile, 36-inch crude oil pipeline stretching from Hardisty, Alberta and moving southeast through Saskatchewan, Montana, South Dakota and Nebraska. It will link up with a portion of the Keystone Pipeline that is being built through Kansas to Cushing, OK, and facilitate take away capacity from U.S. hubs located on the pipeline. The pipeline will then continue on through Oklahoma to a delivery point near existing terminals in Nederland, TX, to serve the Port Arthur, TX, marketplace.

Also proposed is an approximate 47-mile pipeline to transport crude oil from Liberty County, TX, to the Houston area.

The proposed project will also require new facilities at the Keystone Hardisty Terminal, including: three operational storage tanks, an initiating pump station and interconnections with existing pipeline systems in the Hardisty area. The Keystone Gulf Coast Expansion includes construction of an additional eight pump stations in Canada and 30 pump stations in the United States.

TransCanada received approval in March 2010 from the National Energy Board in Canada for the proposed Keystone expansion project. When completed, the expansion project will increase the commercial capacity of the Keystone Pipeline System from 590,000 bpd to approximately 1.1 MMbpd. The US$12 billion system is 83 percent subscribed with long-term, binding contracts that include commitments of 910,000 bpd for an average term of approximately 18 years.

Plans call for the entire project to be completed in 2013.

The Laborers International Union of North America represents half a million workers in the heavy construction and building construction trade, the International Brotherhood of Teamsters represents 1.4 million professionals in the private and public sector, the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, AFL-CIO represents 300,000 members across North America in the plumbing and pipefitting industry, and the International Union of Operating Engineers represents 400,000 operating engineers, who work as heavy equipment operators, mechanics, and surveyors in the construction industry, and stationary engineers, who work in operations and maintenance in building and industrial complexes, and in the service industries.