TransCanada Corp. said it is buying ConocoPhillips interest in the Keystone Pipeline for $550 million and assumption of $200 million in short term debt.

TransCanada now becomes the sole owners of the $12 billion pipeline that runs 2,148 miles from Hardisty, Alberta through the Dakotas and eventually to terminals in Port Arthur, TX. About $2.7 billion has been spent so far on steel pipe, right of way acquisition and construction.

Installation of the 36-inch crude oil pipeline is now going on in North Dakota and South Dakota and initially, the line will carry 435,000 BOPD to serve markets in Illinois.

“The acquisition represents a unique opportunity for TransCanada to become the exclusive owner of an important oil transmission systems that will play a vital role in transporting a growing supply of Canadian crude oil to the largest refining markets in the US for decades to come,” said TransCanada CEO and President Hal Kviste.

The Keystone has long-term commitments for 910,000 BOPD over an 18-year period. In the future, the pipeline could be expanded from its projected capacity of 1.1 million barrels per day to 1.5 million barrels per day.

Work on the line that will run from Illinois to Cushing, OK will start in late 2010 and those segments of the pipeline with carry 590,000 barrels a day.

Source: Oil Patch Hotline

More News:

• Shale gas could add 270,000 jobs by 2015
• Magnum Hunter, Stone Energy form Marcellus Shale joint agreements in West Virginia
• Rosetta to invest $590MM to expand activities in the Eagle Ford shale
• Enterprise spuds Bakken/Three Forks well in Montana
• Direct Energy takes bite of Carrot
• GOP locks Keystone into tax cut bill
• TransCanada: State of Nebraska to play major role in defining new Keystone XL pipeline route
• Petro One discovers oil at J1 Rosebank
• Shale deals drive US M&A activity -- up 135% in third quarter
• Total Canada's Joslyn project in Alberta

• More...