Friday, January 16, 2009

TransCanada says construction of Keystone Pipeline won’t be delayed

CALGARY, Alta. - Delays to projects planned by Canadian oil producers and U.S. refiners will not hamper construction of TransCanada Corp's $12 billion Keystone oil pipeline to the United States, as most of it is already booked with committed crude volumes, an executive said on Jan. 14.
The pipeline, being built as far as the U.S. Gulf Coast in two phases, has attracted more than 900,000 b/d of oil in long-term shipping contracts from companies with projects either producing now or under construction, Russ Girling, president of TransCanada's pipelines division, said.
Billions of dollars worth of Canadian oil sands development plans have been either put on hold or deferred indefinitely as oil prices have dived and credit markets have frozen up in recent months.
"The cancellations you've been hearing about haven't had a large impact on our project because we were never planning against those projects anyway," Girling told reporters after giving a speech to an Insight Information oil sands conference. "We were planning against the (Canadian Association of Petroleum Producers) original forecast, which risked a lot of those projects."

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