Share “Keystone XL pipeline reaches capacity...”

Keystone XL pipeline reaches capacity ahead of schedule

TransCanada’s Gulf Coast Project, a pipeline connecting Cushing with refineries along the Gulf of Mexico coast, reached capacity in about 45 days, a company official said.
by Jay F. Marks Published: March 24, 2014
Advertisement

The southern leg of Keystone XL pipeline reached capacity much faster than expected, a TransCanada official said Monday.

Corey Goulet, vice president of TransCanada’s Keystone development, said the company wanted the 487-mile pipeline to transport 700,000 barrels of oil a day after about 90 days of operation.

“We achieved that last week” in about half that time, Goulet said in a telephone interview with The Oklahoman. He was in Tulsa on Monday to visit a local pipeline company and speak to the Tulsa Pipeliners Club.

Goulet said the pipeline known as the Gulf Coast Project has helped relieve the bottleneck at the Cushing hub when the capacity of pipelines into the hub vastly exceeded the ability to move it out. The line started moving crude oil out of Cushing on Jan. 22.

He said that has narrowed the discount on West Texas Intermediate crude, the oil priced at Cushing, compared with Brent crude, the major benchmark for oil worldwide.

The gap now is about $5 a barrel, Goulet said, but it had reached as much as $25 before the pipeline was completed.

TransCanada built that leg of its Keystone XL pipeline after its original bid for a presidential permit for the transcontinental pipeline in 2012. The company still is pursuing a permit for the other half of the project.

Goulet said a resolution on TransCanada’s permit application could come this summer, noting media reports indicating President Barack Obama recently told a group of governors, including Oklahoma’s Mary Fallin, that a decision would be made in a couple of months.

Continue reading this story on the...

by Jay F. Marks
Energy Reporter
Jay F. Marks has been covering Oklahoma news since graduating from Oklahoma State University in 1996. He worked in Sulphur and Enid before joining The Oklahoman in 2005. Marks has been covering the energy industry since 2009.
+ show more


Trending Now


AROUND THE WEB

  1. 1
    MUST-SEE: Polite Shelter Pets Show Us The Right Way To Do Christmas Dinner
  2. 2
    KOCO: Police say man robs gas station with box cutter
  3. 3
    News 9: Violent School Threat Lands Oklahoma Teen In Jail
  4. 4
    KOCO: Midwest City animal shelter full; dogs could be euthanized
  5. 5
    News 9: Oklahoma County Jail Nurse Arrested In Connection With Drug Crimes
+ show more