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Researched by Industrial Info Resources (Sugar Land, Texas)--As TransCanada Corporation (NYSE:TRP) (Calgary, Alberta) awaits a key decision from Nebraska regarding the route of its controversial Keystone XL crude oil pipeline, the company has a $23 billion capital near-term program in its sights, on which it spent $1.8 billion in the first quarter of this year. Industrial Info is tracking $37.9 billion in projects involving TransCanada.
Some of the capital projects were inherited in TransCanada's $920 million acquisition of Columbia Pipeline Partners (Houston, Texas), which was completed in the first quarter. In a conference call regarding TransCanada's first-quarter 2017 performance, Chief Executive Officer Russ Girling said. "On the growth side, we continued to advance Columbia's $7.1 billion of near-term capital by commencing construction on the US$1.4 billion Leach XPress project and the US$400 million Rayne XPress project. Both of those are expected to be in service by November this year." The U.S. Federal Energy Regulatory Commission (FERC) approved both projects earlier this year.
The Leach XPress project involves construction of approximately 160 miles of natural gas pipeline in Ohio, Pennsylvania and West Virginia. The pipeline will be able to transport up to 1.5 billion cubic feet per day (Bcf/d) of natural gas to customers served by Columbia's existing Columbia Gas and Columbia Gulf pipeline systems. For more information, see Industrial Info's project reports on the Ohio, Pennsylvania and West Virginia sections of the pipeline.
The Rayne Xpress project involves enhancing an existing natural gas pipeline with new compressor stations to add 1 Bcf/d of capacity to flow to the Gulf Coast. For more information, see Industrial Info's project reports on grassroot compressor stations near Means and Grayson in Kentucky.
The company's Liquids segment has also benefited from recent capital expenditures. Included in the Liquids segment is the company's Grand Rapids crude oil and diluent pipelines, which are expected to enter service by the end of this year. The 287-mile pipeline will connect oil-producing areas northwest of Fort McMurray, Alberta, to the Edmonton market. The crude oil pipeline will carry 900,000 barrels per day (BBL/d) of blended bitumen from Fort McMurray to Edmonton, while the diluent pipeline will run in the opposite direction, carrying 330,000 BBL/d. For more information, see Industrial Info's project reports on the crude oil and diluent portions of the project.
TransCanada's Keystone XL crude oil pipeline remains a work in progress. The project has received route approval in all of the U.S. states it will cross, with the exception of Nebraska. In the conference call, Girling said: "We began to once again advance the Keystone XL project. On March 24, we received the presidential permit, which as you know is a significant and long-awaited milestone for this project. In February, we also filed an application with the Nebraska Public Service Utility Commission seeking approval for the pipeline route through the state of Nebraska. Hearing on that application is scheduled in August, and a final decision is expected by the end of November 2017." According to Reuters, TransCanada has been unable to negotiate easements with landowners on about 9% of the pipeline's route through Nebraska. For more information, see Industrial Info's project report on the Nebraska portion of the pipeline.
Girling said about $7.5 billion of the company's planned $23 billion in near-term capex had been spent. "The remaining $15 billion required to complete these projects will largely be spent through the end of 2019, and we remain well-positioned to fund the rest of that capital program."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Some of the capital projects were inherited in TransCanada's $920 million acquisition of Columbia Pipeline Partners (Houston, Texas), which was completed in the first quarter. In a conference call regarding TransCanada's first-quarter 2017 performance, Chief Executive Officer Russ Girling said. "On the growth side, we continued to advance Columbia's $7.1 billion of near-term capital by commencing construction on the US$1.4 billion Leach XPress project and the US$400 million Rayne XPress project. Both of those are expected to be in service by November this year." The U.S. Federal Energy Regulatory Commission (FERC) approved both projects earlier this year.
The Leach XPress project involves construction of approximately 160 miles of natural gas pipeline in Ohio, Pennsylvania and West Virginia. The pipeline will be able to transport up to 1.5 billion cubic feet per day (Bcf/d) of natural gas to customers served by Columbia's existing Columbia Gas and Columbia Gulf pipeline systems. For more information, see Industrial Info's project reports on the Ohio, Pennsylvania and West Virginia sections of the pipeline.
The Rayne Xpress project involves enhancing an existing natural gas pipeline with new compressor stations to add 1 Bcf/d of capacity to flow to the Gulf Coast. For more information, see Industrial Info's project reports on grassroot compressor stations near Means and Grayson in Kentucky.
The company's Liquids segment has also benefited from recent capital expenditures. Included in the Liquids segment is the company's Grand Rapids crude oil and diluent pipelines, which are expected to enter service by the end of this year. The 287-mile pipeline will connect oil-producing areas northwest of Fort McMurray, Alberta, to the Edmonton market. The crude oil pipeline will carry 900,000 barrels per day (BBL/d) of blended bitumen from Fort McMurray to Edmonton, while the diluent pipeline will run in the opposite direction, carrying 330,000 BBL/d. For more information, see Industrial Info's project reports on the crude oil and diluent portions of the project.
TransCanada's Keystone XL crude oil pipeline remains a work in progress. The project has received route approval in all of the U.S. states it will cross, with the exception of Nebraska. In the conference call, Girling said: "We began to once again advance the Keystone XL project. On March 24, we received the presidential permit, which as you know is a significant and long-awaited milestone for this project. In February, we also filed an application with the Nebraska Public Service Utility Commission seeking approval for the pipeline route through the state of Nebraska. Hearing on that application is scheduled in August, and a final decision is expected by the end of November 2017." According to Reuters, TransCanada has been unable to negotiate easements with landowners on about 9% of the pipeline's route through Nebraska. For more information, see Industrial Info's project report on the Nebraska portion of the pipeline.
Girling said about $7.5 billion of the company's planned $23 billion in near-term capex had been spent. "The remaining $15 billion required to complete these projects will largely be spent through the end of 2019, and we remain well-positioned to fund the rest of that capital program."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
