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Researched by Industrial Info Resources (Sugar Land, Texas)--The denial of presidential approval to the Keystone XL (KXL) cross-border crude oil pipeline project, which was owned and to be operated by TransCanada Corporation (NYSE:TRP) (Calgary, Alberta), has made presidential approval seem an even more formidable hurdle on the path to building international hydrocarbon transport infrastructure. However, there were multiple cross-border pipeline projects proposed during the past eight years that went ahead as planned and were successfully permitted and completed. Thus, it may be inaccurate to say that a pipeline-unfriendly president is a death sentence for cross-border pipelines. Multiple factors may have influenced the completed lines' success and KXL's failure. Notably, the length of the pipe, the product it carries and the border it crosses seem to be the main differences between the successful projects and KXL.
The KXL project was proposed as a 1,179-mile, 36-inch-diameter pipeline that crossed the U.S.-Canada border in Montana and traveled through acres of virgin land in South Dakota and Nebraska. It was expected to carry 500,000 barrels per day (BBL/d) of heavy Alberta Oil Sands crude oil through that entire length on its way to Cushing, Oklahoma, and eventually the Gulf Coast. The project was a long-haul pipe, carrying a heavy liquid crossing the border with Canada in states with relatively little pipeline presence.
Among the projects which were permitted and completed under the same presidential administration is NET Mexico by NET Midstream, a subsidiary of NextEra Energy Partners LP (NYSE:NEP) (Juno Beach, Florida), which is 124 miles of pipe in the U.S. that can transport 1 billion cubic feet per day (Bcf/d) of natural gas from Texas to Mexico. Another similar project is the Trans-Pecos pipeline project by Energy Transfer Partners (NYSE:ETP) (Dallas, Texas) which will carry 1.35 Bcf/d of natural gas through 143 miles of 42-inch-diameter pipe in Texas to the border of Mexico. Trans-Pecos was permitted and began construction at the beginning of 2016, shortly after the denial of KXL's approval.
Where KXL was over a thousand miles long, carried a liquid product and traversed the border with Canada through states that had less pipeline presence, the successful examples above were shorter, carried a gaseous product and traversed the border with Mexico through the most pipeline-friendly state in the U.S., Texas.
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/.
The KXL project was proposed as a 1,179-mile, 36-inch-diameter pipeline that crossed the U.S.-Canada border in Montana and traveled through acres of virgin land in South Dakota and Nebraska. It was expected to carry 500,000 barrels per day (BBL/d) of heavy Alberta Oil Sands crude oil through that entire length on its way to Cushing, Oklahoma, and eventually the Gulf Coast. The project was a long-haul pipe, carrying a heavy liquid crossing the border with Canada in states with relatively little pipeline presence.
Among the projects which were permitted and completed under the same presidential administration is NET Mexico by NET Midstream, a subsidiary of NextEra Energy Partners LP (NYSE:NEP) (Juno Beach, Florida), which is 124 miles of pipe in the U.S. that can transport 1 billion cubic feet per day (Bcf/d) of natural gas from Texas to Mexico. Another similar project is the Trans-Pecos pipeline project by Energy Transfer Partners (NYSE:ETP) (Dallas, Texas) which will carry 1.35 Bcf/d of natural gas through 143 miles of 42-inch-diameter pipe in Texas to the border of Mexico. Trans-Pecos was permitted and began construction at the beginning of 2016, shortly after the denial of KXL's approval.
Where KXL was over a thousand miles long, carried a liquid product and traversed the border with Canada through states that had less pipeline presence, the successful examples above were shorter, carried a gaseous product and traversed the border with Mexico through the most pipeline-friendly state in the U.S., Texas.
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/.
