​Keystone XL gets enough shipper support to proceed

TransCanada CEO Russ Girling. Image: Teddy Kwok

TransCanada Corp. has enough shipper interest to go forward with the Keystone XL crude oil pipeline.

The Calgary-based company secured "approximately 500,000 barrels per day of firm, 20-year commitments,” according to a statement on Thursday. The pipeline operator said it will continue to secure additional long-term contracts for the pipe.

TransCanada received state approval in Nebraska in November to construct the project using an alternate route. It is working with landowners along the new path to obtain the neccessary easements, the company said.

Construction preparation has begun, with primary construction starting in 2019, according to the statement.

“Over the last 12 months, the Keystone XL project has achieved several milestones that move us significantly closer to constructing this critical energy infrastructure for North America," Russ Girling, TransCanada’s chief executive officer, said in the statement.

The statement didn’t say that a final decision has been made by the company to proceed and Terry Cunha, a spokesman for TransCanada, didn’t immediately respond to a request for comment.

© 2018 Bloomberg L.P

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