Yo Canucks

Yo Canucks

Yo Canucks

Yo Canucks

Yo Canucks

Yessshhhh?...you bellered oh woody one?...

Rawrrrrrrrrrr

Something about a Canadadian fire that brings out the beasties eh?...

Purrrrrrr.....

Primal Urges

CALGARY -- TransCanada Corp. is plowing ahead with a $7-billion US expansion of the Keystone pipeline project, taking a bold step into first place in the race to build a direct link between Alberta oilsands producers and the major refinery centre on the Texas coast.

The announcement Wednesday, only a month after construction began on the first $5.2-billion US phase of Keystone, comes less than a week after TransCanada's top rival, Enbridge Inc., rejigged its own strategy to connect growing volumes of crude from Alberta to the continent's largest refining market.

The recent moves by both Calgary companies demonstrate the challenge pipeliners are facing around timing the arrival of their massive transportation projects with the needs of oilsands producers.

Many, including the Canadian Association of Petroleum Producers, are now predicting slow-than-expected production growth from the oilsands.

TransCanada said Wednesday its decision to advance the Keystone expansion follows a successful round of negotiations with unnamed producers in Alberta that committed to ship 300,000 barrels of oil a day, for an average term of 18 years, between Hardisty, Alta., and Port Arthur, Texas, starting in 2012, the projected completion date of Keystone's second phase.

The 3,200-kilometre pipeline would have a capacity to move 500,000 barrels a day, and Trans-Canada will spend the rest of the summer trying to land commitments for the rest of the line's capacity. The project still must clear a web of regulatory approvals in Canada and the U.S.

TransCanada's partner in Keystone, ConocoPhillips, has committed to move oil on Keystone's first and second phases.

Lanny Pendill, an analyst who covers both TransCanada and Enbridge for investment firm Edward Jones, said there will likely be room for only one large, direct link between Alberta and Texas in the next four to six years.

After that, however, Pendill believes both the Keystone expansion and Enbridge's $2.6-billion US Texas Access line, which would move 445,000 barrels a day into the Texas refining market, will be required.

"TransCanada has Conoco on its side and Enbridge has Exxon on its side and both big producers have a lot of refining capacity down there," Pendill said. "It looks a bit like TransCanada is designing an option that may benefit ConocoPhillips a little more, whereas maybe Enbridge is trying to work out a solution of which the timing relates more to Exxon's situation. Clearly, though, it appears TransCanada has made more progress and is moving in the right direction."

The first phase of Keystone, which will move 530,000 barrels a day of Alberta crude into the U.S. Midwest by 2009, is being built. That phase will ultimately extend from Illinois west to Nebraska and on to Cushing, Okla.

In total, the whole Keystone system could move 1.1 million barrels a day of Alberta crude south, with a total construction cost of $12.2 billion US.

It's clear TransCanada is trying to position itself to become the dominant shipper of oilsands crude to Texas.

The Keystone system could be expanded by adding pump stations to a capacity of 1.5 million barrels a day "relatively inexpensively," said Russ Girling, TransCanada's president of pipelines.

"It sets us up well for the next [third] phase, if that comes along," Girling said. "That may be delayed to 2017-2018 but we are positioned now to move that crude to market."

Another wild card in the race to refinery row in Texas is Altex Energy, a private Calgary firm headed up by well-know oilpatch veteran Jack Crawford.

Crawford said Wednesday Altex is still working with "a group of shippers" on commercial arrangements around a plan to build a pipeline between Alberta and Texas that would initially move 400,000 barrels a day and be expandable later to one million barrels a day.

Those companies haven't changed their plans due to the headwinds that have hit some Alberta oilsands producers.

"I wouldn't say it's not affecting us, but these delays have also perhaps taken some of the urgency away with respect to a tight spot in 2009 and 2010," Crawford said.

© The Vancouver Sun 2008

Yo Canucks

Only half of me can reply to that as I am a YanCan..

So is there lots of wood for the fire tonight??..

1/2 cord'll do

makin a tower

And even though it rained. Thanks to you know who. This wood will burn.

its great to be alone in the morning

John...did you know that we are never really alone...Im watching Ripleys Believe it or not.....I have strange friends on TV right now....hehehehehe

Where is my girlfriend ((((ES)))) Is she cheating on me already...darn...and I thought I had what it took...*scratching head*

we are alone

Ok...what do you want to do....climb a tree and hang ropes for a swing....???

I just wanna dance and loose my pants