Monday, January 2, 2012

Fact on the Keystone Pipeline System

Keystone Pipeline System

An innovative and cost-competitive solution to a growing
North American demand for energy, the Keystone Pipeline
System will link a reliable and stable source of Canadian
crude oil with U.S. demand. Upon completion, the
Keystone Pipeline System will be comprised of the 2,151-
mile (3,461-kilometre) Keystone Pipeline and the proposed
1,661-mile (2,673-kilometre) Keystone Gulf Coast Expansion
Project (Keystone XL). TransCanada affiliates will build and
operate the Keystone Pipeline System in four phases.
Keystone Pipeline (Phase I)

Originating at Hardisty, Alta., Keystone Phase I transports
crude oil to U.S. Midwest markets at Wood River and
Patoka, Ill. Keystone Phase I began commercial operation
in June 2010.

The Canadian portion of Keystone Phase I involved the
conversion of approximately 537 miles (864 kilometres)
of existing TransCanada pipeline in Saskatchewan and
Manitoba from natural gas to crude oil transmission
service. Along with the construction of 16 pump stations
and approximately 232 miles (373 kilometres) of new
pipeline in Canada, new facilities were also required
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 U.S. portion of the Keystone Pipeline included the
construction of 1,084 miles (1,744 kilometres) of new, 30-
inch diameter pipeline and 23 pump stations throughout
North Dakota, South Dakota, Kansas, Missouri, and Illinois.
Keystone Cushing Extension (Phase II)
Measuring approximately 298 miles (480 kilometres) in
length, Keystone Phase II is an extension of Keystone Phase
I from Steele City, Neb., to Cushing, Okla.

Construction of the 36-inch diameter pipeline was
completed in 2010, connecting Keystone Phase I to
storage and distribution facilities at Cushing, a major
crude oil marketing/refining and pipeline hub. In addition,
Keystone Phase II included the construction of four new
pump stations as well as an expansion of additional
pumping units for 22 of the 23 pump stations built as part
of Phase I in the United States.

In Canada, Phase II also included the construction of seven
new pump stations and additional pumping units for seven
of the 16 initial pump stations built to support Phase I.
Keystone Phase II commenced commercial operation in
February 2011.

Keystone Gulf Coast Expansion (Phases III and IV)
The proposed Keystone Gulf Coast Expansion Project is a 1,661-
mile (2,673-kilometre), 36-inch crude oil pipeline that would begin
at Hardisty, Alta. and extend southeast through Saskatchewan,
Montana, South Dakota and Nebraska. It will incorporate the 298-
mile (480-kilometre) portion of Keystone Phase II through Nebraska
and Kansas to serve markets at Cushing, Okla. Keystone Phase III will
continue south from Cushing to a delivery point near terminals in
Nederland, Texas to serve the Port Arthur, Texas marketplace.
Construction of Keystone Phase III would be built first and would include
435 miles (700 kilometres) of new pipeline in Oklahoma and Texas.
Construction of Keystone Phase IV would follow with approximately 327
miles (526 kilometres) of new pipeline through Canada. The pipeline
would then extend south approximately 852 miles (1,371 kilometres)
through Montana and South Dakota to Steele City, Neb.

Also proposed is an approximate 47-mile (76 kilometre) pipeline to
transport crude oil from Liberty County, Texas to the Houston, Texas 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 would include
construction of an additional eight pump stations in Canada and 30 pump
stations in the United States.

Commercial Information
The first leg of the Keystone Pipeline from Hardisty, Alta. to Wood
River and Patoka, Ill. has capacity of 435,000 barrels per day. Phase II
of the project to Cushing, Okla. increases capacity to 591,000 barrels
per day. Keystone XL will add an additional 500,000 barrels per day
in 2013. When completed, Keystone XL will increase the commercial
design of the Keystone Pipeline System from 591,000 barrels per day to
approximately 1.1 million barrels per day. Keystone Pipeline has secured
long-term commitments for 910,000 barrels per day for an average term
of approximately 18 years. These commitments represent approximately
83 per cent of the commercial design of the Keystone System which will
have a capital investment of approximately US$12 billion.

Regulatory Requirements
TransCanada received National Energy Board approval in 2007 for two
major regulatory applications to construct and operate the Canadian
portion of the Keystone Pipeline Project. The U.S. Department of State
issued its Record of Decision and National Interest Determination
regarding the Keystone Pipeline in the first quarter of 2008. In the first
quarter of 2010, TransCanada received approval from the National
Energy Board to construct and operate the Canadian portion of the
Keystone Gulf Coast Expansion Project. Applications for U.S. regulatory
approvals are proceeding and decisions are anticipated in 2011.
Construction in the U.S. is set to start soon after regulatory approvals are
received and expected deliveries of crude oil to the U.S. Gulf Coast to
begin in 2013.

Design and Construction
When designing and constructing facilities, we use
high-strength steel and specialized welding and
inspection techniques developed specifically for
high-pressure pipelines. All pipe is delivered from
qualified manufacturers with a corrosion resistant
protective coating.
The pipeline is buried with a minimum depth of
cover of four feet (1.2 metres), except in areas of
consolidated rock, where the pipeline is buried with
a minimum depth of cover of three feet (one metre).
The permanent right-of-way easements – the strips of
land set aside to construct and operate a pipeline –
measure approximately 50 feet (15 metres) in width,
although additional temporary workspace is required
during construction.

We use non-destructive examination equipment to
inspect all welds and then apply a coating to the weld
to protect it from corrosion. Additionally, prior to being
placed into operation, all new pipeline sections are
pressure tested with water up to at least 125 per cent of
the pipeline’s maximum allowable operating pressure.

Your Safety, Our Integrity
The safety of the public and our employees is our top
priority. We meet or exceed industry and government
standards that have been designed to ensure public
safety. Our commitment is reflected in the design and
construction of our facilities, as well as in our operating
and maintenance practices.

The Keystone Pipeline System will traverse primarily agricultural
lands; therefore, considerable focus will be placed on the
handling, conservation and reclamation of the soils and
vegetation to ensure the land’s equivalent capability is
maintained. We take great care and extensive planning to
minimize and avoid impacts to the environment, including rare or
endangered species, habitat and significant water crossings.

About TransCanada
TransCanada is a leader in the responsible development and
reliable operation of North American energy infrastructure,
including natural gas pipelines, power generation, gas storage
facilities, and projects related to oil pipelines. TransCanada’s
network of wholly owned pipelines extends more than 37,000
miles (59,000 kilometres) in North America. TransCanada is one
of the continent’s largest providers of gas storage. TransCanada
owns or has interests in approximately 11,700 megawatts of
power generation in Canada and the United States. For more
information, go to

Our pipeline maintenance activities include regular aerial patrols,
internal pipeline inspection using specialized electronic inspection
tools and cathodic protection systems. The pipeline is continuously
monitored using supervisory control and data acquisition (SCADA) and
leak detection systems.

We maintain an ongoing public awareness program to keep the lines
of communication open with our neighbors about our facilities and
how to live and work safely around pipelines. As part of this program,
we involve local emergency response agencies to ensure there is an
understanding about the specifics of our pipeline, which will lead to
the safe and effective response in the unlikely event of an incident.

Respecting the Environment
We design, construct and operate our facilities to meet or exceed
all applicable laws and regulations and to minimize risks to our
employees, the public and the environment. We respect the diverse
environments and cultures in which we operate. We work diligently
to minimize adverse environmental impacts from our activities,
while upholding our responsibility to meet today’s strategic energy
demands. Our goal is to conserve environmental resources and reestablish
the essential physical, chemical and biological characteristics
of the environment.

No comments: