TransCanada Corporation (NYSE:TRP) (TSX:TRP) has received sufficient contractual support to proceed with its Cushing Marketlink pipeline project which will have the ability to provide transportation of 150,000 barrels per day (bbl/d) of U.S. crude oil production from Cushing, Oklahoma to the U.S. Gulf Coast.
"This project will create a direct link between Cushing, the largest crude oil storage hub in the world, and North America's largest refinery complex, the U.S. Gulf Coast," said Russ Girling, TransCanada's president and chief executive officer. "Combined with our Bakken Marketlink project, these two projects will have the pipeline capacity to transport up to 250,000 barrels per day of U.S. crude oil production by connecting to facilities that form part of the Keystone XL system."
The proposed Keystone XL route through Cushing, Oklahoma positions TransCanada to provide cost-effective pipeline capacity from the region to the U.S. Gulf Coast. Additional pipeline capacity from Cushing to the U.S. Gulf Coast is expected to contribute to reducing the discount U.S. crude oil producers are experiencing at Cushing.
The project is expected to be in service in the first quarter of 2013, subject to the receipt of necessary regulatory approvals.
Keystone XL has support in the U.S. and will reduce America's dependence on crude oil from Venezuela and the Middle East by up to 40 per cent. The expansion will also create 20,000 jobs for American workers and inject $20 billion into the U.S. economy.