TransCanada (NYSE:TRP) (TSX:TRP) launched a binding Open Season to obtain firm commitments from interested parties for the Cushing Marketlink Project, which would provide crude oil transportation service from Cushing, Oklahoma to the U.S. Gulf Coast.
The proposed Cushing Marketlink Project would involve construction of approximately US$70 million of facilities at Cushing, Oklahoma, a key pipeline and crude oil storage hub. The Project would provide oil transportation service from Cushing to a delivery point near existing terminals in Nederland, Texas using pipeline facilities that form part of TransCanada's proposed Keystone Gulf Coast Expansion Project. In addition, the Project is expected to help alleviate current pipeline capacity constraints and provide shippers with transportation options from the Cushing market.
Following the completion of a successful Open Season, TransCanada intends to proceed with the necessary regulatory applications for approvals to construct and operate the required facilities and to provide transportation services. The Cushing Marketlink Project is expected to commence providing service in the first quarter of 2013.