Monday, January 31, 2011

TransCanada secures agreements for Marketlink pipeline throughput

CALGARY, Alta., and BISMARCK, N.D. - TransCanada Corp. has secured shipper commitments for 65 per cent of its proposed Bakken Marketlink oil pipeline from Montana to the benchmark Cushing storage hub in Oklahoma.

TransCanada said on Jan. 20 that it secured firm commitments of 65,000 b/d from shippers during the month-long open season that closed Nov. 19. The Calgary-based company said it signed five-year contracts with producers tapping the rich Bakken formation in North Dakota and Montana to transport crude on the proposed 1,980-mile-long Keystone XL pipeline, which is designed to move crude from Alberta's oil sands to refineries in Oklahoma and Texas.

TransCanada said the 100,000 b/d capacity line, which will link to its proposed Keystone XL pipeline, will open production from the Bakken region to markets in the U.S. Midwest and Texas.

"These agreements are a clear indication of producer support for the first direct link between the prolific Bakken crude oil producing region in the Williston Basin and key U.S. markets near Cushing, Okla., and the U.S. Gulf Coast, the largest refining market in North America," said chief executive Russ Girling in a statement.

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