Reports related to this article:
Project(s): View 5 related projects in PECWeb
Plant(s): View 5 related plants in PECWeb
en
Researched by Industrial Info Resources (Sugar Land, Texas)--TransCanada Corporation (NYSE:TRP) (Calgary, Alberta) won a key victory in the years-long battle over the Keystone XL pipeline yesterday, when Nebraska's Public Service Commission (PSC) narrowly voted to allow the $8 billion project to pass through the state. But the specific route greenlighted could present its own problems for the company. Industrial Info is tracking every major aspect of the Keystone XL project, including five mainline segments and more than 30 proposed pump stations.
The XL extension on the Keystone pipeline is designed to transport crude oil produced in Alberta to the U.S. Gulf Coast; no product is to be loaded or unloaded along the way. President Barack Obama's administration, in a hotly disputed decision, voided TransCanada's request to expand the pipeline through the U.S. in 2015. Shortly after taking office, President Donald Trump allowed TransCanada to reapply, and his administration later granted approval for the project. Nebraska held a public hearing on TransCanada's application in August, and final written submissions came in September. For more information on the Nebraska portion of Keystone, see Industrial Info's project report.
Both TransCanada's preferred and the approved alternative routes would begin on the border with South Dakota, at the intersection of Nebraska's Keya Paha County and South Dakota's Tripp and Gregory counties, and run to Steele City, which sits on the Kansas border in Nebraska's Jefferson County. But the approved route puts more than half of the state's portion of Keystone in six counties that had been entirely eastward of the preferred line.
The new route largely avoids Nebraska's Sandhills region, an area of between 20,000 and 23,000 square miles that has been designated a National Natural Landmark. But it could touch parts of the Ogallala aquifer, the main source of drinking and irrigation water in Nebraska and much of the Great Plains, according to The Washington Post.
While many of Keystone's most ardent supporters--including Trump--were emphatic about the decision, TransCanada itself was more guarded in its reaction. The company had told Nebraska's regulators that the alternative route was unworkable; in a statement following the PSC decision, Chief Executive Officer Russ Girling said the company would "conduct a careful review of the Public Service Commission's ruling, while assessing how the decision would impact the cost and schedule of the project."
The approval of the alternative route brings to the table a new list of landowners who must be contacted to obtain right-of-way agreements--and, thus, creates new uncertainties. One of the dissenting PSC commissioners, Chrystal Rhoades of Omaha, said these landowners currently may not be aware of the decisions facing them, because no notice was given to them by TransCanada or the state, according to the Omaha World-Herald.
TransCanada was again on the defense last week, when a rupture in the Keystone line spilled an estimated 210,000 gallons (or about 5,000 barrels) of crude oil in South Dakota. The company says it is investigating the leak and has sent crews and equipment to the affected areas.
As with every previous phase of the project, opponents have vowed to challenge the newly approved route in court. TransCanada has said it will not formally decide until next month if it has enough shippers to make the project financially feasible, according to the Omaha World-Herald. But earlier this month, during an earnings-related conference call, TransCanada executives said the company had completed an open season and had enough demand from producers to justify the project.
Another potential challenge facing developers is the economic realities of Alberta's oil sands. Although oil prices have improved in recent months, a long period of low prices--coupled with steep costs for drilling--turned away many big players in the Oil & Gas Industry. Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) and ConocoPhillips (NYSE:COP) (Houston, Texas) are among the heavy-hitters to have divested their assets in the past year, pushing Alberta to turn to foreign developers, particularly those from China. For more information, see June 9, 2017, article - Canada Invites China to Invest in Alberta's Oil Sands, as $12 Billion in Projects Set to Kick Off by End of Year.
Nonetheless, many of the companies still operating in the oil sands are building or expanding capacity, including Brion Energy Corporation (Calgary), which is owned by China National Petroleum Corporation (NYSE:PTR) (PetroChina) (Beijing, China). Industrial Info is tracking more than $24 billion in projects in Western Canada that are set to wrap up this quarter, about 85% of which are in either the Metals & Minerals or Oil & Gas industries. For more information, see October 13, 2017, article - Oil Sands Growth Drives Western Canada's $34 Billion in Fourth-Quarter Kickoffs, Completions.
For more information on the other major Keystone XL segments, see Industrial Info's project reports on the Alberta, Saskatchewan, Montana and South Dakota portions.
For more information on other TransCanada projects in various stages of development, including the Rayne Xpress, Mountaineer XPress and Gulf XPress natural gas pipelines in the U.S., and the Tula-Villa de Reyes project and Sur de Texas pipelines in Mexico, see November 10, 2017, article - TransCanada Expects Decision on Keystone XL by End of Month.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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 XL extension on the Keystone pipeline is designed to transport crude oil produced in Alberta to the U.S. Gulf Coast; no product is to be loaded or unloaded along the way. President Barack Obama's administration, in a hotly disputed decision, voided TransCanada's request to expand the pipeline through the U.S. in 2015. Shortly after taking office, President Donald Trump allowed TransCanada to reapply, and his administration later granted approval for the project. Nebraska held a public hearing on TransCanada's application in August, and final written submissions came in September. For more information on the Nebraska portion of Keystone, see Industrial Info's project report.
Both TransCanada's preferred and the approved alternative routes would begin on the border with South Dakota, at the intersection of Nebraska's Keya Paha County and South Dakota's Tripp and Gregory counties, and run to Steele City, which sits on the Kansas border in Nebraska's Jefferson County. But the approved route puts more than half of the state's portion of Keystone in six counties that had been entirely eastward of the preferred line.
The new route largely avoids Nebraska's Sandhills region, an area of between 20,000 and 23,000 square miles that has been designated a National Natural Landmark. But it could touch parts of the Ogallala aquifer, the main source of drinking and irrigation water in Nebraska and much of the Great Plains, according to The Washington Post.
While many of Keystone's most ardent supporters--including Trump--were emphatic about the decision, TransCanada itself was more guarded in its reaction. The company had told Nebraska's regulators that the alternative route was unworkable; in a statement following the PSC decision, Chief Executive Officer Russ Girling said the company would "conduct a careful review of the Public Service Commission's ruling, while assessing how the decision would impact the cost and schedule of the project."
The approval of the alternative route brings to the table a new list of landowners who must be contacted to obtain right-of-way agreements--and, thus, creates new uncertainties. One of the dissenting PSC commissioners, Chrystal Rhoades of Omaha, said these landowners currently may not be aware of the decisions facing them, because no notice was given to them by TransCanada or the state, according to the Omaha World-Herald.
TransCanada was again on the defense last week, when a rupture in the Keystone line spilled an estimated 210,000 gallons (or about 5,000 barrels) of crude oil in South Dakota. The company says it is investigating the leak and has sent crews and equipment to the affected areas.
As with every previous phase of the project, opponents have vowed to challenge the newly approved route in court. TransCanada has said it will not formally decide until next month if it has enough shippers to make the project financially feasible, according to the Omaha World-Herald. But earlier this month, during an earnings-related conference call, TransCanada executives said the company had completed an open season and had enough demand from producers to justify the project.
Another potential challenge facing developers is the economic realities of Alberta's oil sands. Although oil prices have improved in recent months, a long period of low prices--coupled with steep costs for drilling--turned away many big players in the Oil & Gas Industry. Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) and ConocoPhillips (NYSE:COP) (Houston, Texas) are among the heavy-hitters to have divested their assets in the past year, pushing Alberta to turn to foreign developers, particularly those from China. For more information, see June 9, 2017, article - Canada Invites China to Invest in Alberta's Oil Sands, as $12 Billion in Projects Set to Kick Off by End of Year.
Nonetheless, many of the companies still operating in the oil sands are building or expanding capacity, including Brion Energy Corporation (Calgary), which is owned by China National Petroleum Corporation (NYSE:PTR) (PetroChina) (Beijing, China). Industrial Info is tracking more than $24 billion in projects in Western Canada that are set to wrap up this quarter, about 85% of which are in either the Metals & Minerals or Oil & Gas industries. For more information, see October 13, 2017, article - Oil Sands Growth Drives Western Canada's $34 Billion in Fourth-Quarter Kickoffs, Completions.
For more information on the other major Keystone XL segments, see Industrial Info's project reports on the Alberta, Saskatchewan, Montana and South Dakota portions.
For more information on other TransCanada projects in various stages of development, including the Rayne Xpress, Mountaineer XPress and Gulf XPress natural gas pipelines in the U.S., and the Tula-Villa de Reyes project and Sur de Texas pipelines in Mexico, see November 10, 2017, article - TransCanada Expects Decision on Keystone XL by End of Month.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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/.
