Siemens Energy (SI) has received an order to supply integrated pumping solutions for TransCanada's (TRP)Keystone Gulf Coast Expansion Project. The pipeline will have the capability to transport crude oil from Alberta, Canada to serve markets on the U.S. Gulf Coast. The expansion will complement the overall Keystone Pipeline System, with the first phase expected to begin delivering crude oil to the US Midwest in mid-2010. The order value for Siemens is more than US $180 million.
"TransCanada's decision to work with Siemens reinforces our strategy of combining a broad range of integrated technology, equipment and expertise in pipeline applications, and the ability to successfully execute complex cross-border projects," said Jim Mugford, Siemens Canada vice president, Oil and Gas.
"TransCanada benefits by receiving an innovative solution that offers better reliability, with higher efficiencies and lower risks, and at the same time, Siemens is pleased to be given the opportunity to be able to support TransCanada in delivering reliable supplies of energy across the North American continent."
The Keystone expansion recently achieved a significant milestone receiving regulatory approval for the Canadian portion of the project. This expansion will be the first pipeline to directly connect a growing and reliable supply of Canadian crude oil to the largest refining market in North America. Shippers have committed crude oil that amounts to 75 percent of the expansion capacity for an average term of 17 years, reflecting the value the project has to the overall market.
Siemens will supply pumps and electrical equipment for 38 pumping stations, which includes 104 pumps and motors, as well as variable- frequency drives, E-houses with medium- and low-voltage switchgear, and unit control systems for each pumping station. Furthermore, Siemens will be responsible for system integration of the components and will also deliver four high-voltage substations.
"Siemens brings to this project a long history of quality performance and project execution. Combining this with our modular and integrated electrical system approach will allow us to help make the Keystone expansion a success for TransCanada," said Daniel Duncan, vice president and general manager of Siemens Energy, Inc.'s Oil and Gas Division. "We are very pleased that TransCanada has entrusted us with this project and we look forward to the opportunity to support this key infrastructure improvement project in the U.S. market."