Tuesday, May 1, 2012

The Tar Sands Pipeline Boom

As debate over the future of the Keystone XL tar sands pipeline continues to boil in Congress and on the presidential campaign trail, energy companies are proceeding with many other pipeline projects that would give large amounts of Canadian crude access to foreign markets within the next five years.

InsideClimate News compiled a map and list showing industry's planned expansion. We discovered that there are more than 10,000 miles of pipelines planned to send an additional 3.1 million barrels a day of Alberta's oil to export markets, at a cost to build of almost $40 billion.



A breakdown of recently completed and proposed projects:
Keystone Phase I
Company building it: TransCanada
Project date: Online June 2010
Origin and destination: Hardisty, Alberta to Steele City, Neb., and on to Wood River, Ill. and Patoka, Ill.
Length: 2,147 miles
Capacity: Initial capacity is 435,000 barrels per day, with the capability of increasing to 591,000 barrels per day
Cost: Approximately $4.6 billion
Project status: Operational since June 2010

Keystone Cushing Extension (Keystone Phase II)
Company building it: TransCanada
Project date: Online February 2011
Origin and destination: Steele City, Neb. to the Midwest oil hub in Cushing, Okla.
Length: 298 miles
Capacity: Keystone Phase I plus the Keystone Cushing Extension can deliver up to 591,000 barrels per day
Cost: Approximately $1.6 billion
Project Status: Operational since February 2011

Keystone XL Pipeline Project
Company building it: TransCanada
Project date: Originally proposed in 2008. TransCanada is expected to file a new presidential permit application with the U.S. State Department in May 2012. A federal review is required because it crosses an international border.
Origin and destination: Hardisty, Alberta to Steele City, Neb.
Length: 1,179 miles
Capacity: Capacity of 830,000 barrels per day
Cost: Approximately $5 billion
Project status: TransCanada expects a start date of sometime in 2015.

The Gulf Coast Pipeline Project
Company building it: TransCanada
Project date: Originally proposed as the southern portion of the Keystone XL system in 2008. In February 2012, TransCanada announced that it would proceed with the south leg first to skirt a federal review of the entire project. Because it does not cross an international border, the southern part would not require approval of the State Department.
Origin and destination: Cushing, Okla. and extending south to Nederland, Texas to serve Gulf Coast refineries
Length: 485 miles
Capacity: Initial capacity of 700,000 barrels of oil per day, which could be expanded to 830,000 barrels of oil per day
Cost:  Approximately $2.3 billion
Project status: TransCanada expects construction to begin in mid-2012, with an anticipated start date of mid-to-late 2013.

Houston Lateral Project
Company building it: TransCanada
Project date: Originally proposed as part of the Keystone XL system in 2008.









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