TransCanada Receives Regulatory Approval for Grand Rapids Pipeline Project
TransCanada Corporation (TSX: TRP) (NYSE: TRP) (TransCanada) announced that the Alberta Energy Regulator (AER) has approved the majority of the company’s applications to construct and operate the Grand Rapids Pipeline Project (Grand Rapids). Grand Rapids will comply with all regulatory requirements and is evaluating the conditions in the decision.
“We are pleased that the Alberta Energy Regulator has approved Grand Rapids. The pipeline will be a critical piece of infrastructure to support the long-term growth plans and increased oil production in the Alberta oil sands and other oil-producing areas in northern Alberta,” said Russ Girling, TransCanada’s president and chief executive officer. “With permits already received for Northern Courier and now Grand Rapids, we have made significant progress this year in advancing our capital program of Alberta regional liquids pipeline projects.”
TransCanada has partnered with Brion Energy Corporation (Brion), formerly Phoenix Energy Holdings Limited, through a joint venture to develop Grand Rapids, a 460-kilometre (287 mile) oil and diluent pipeline system connecting the producing area northwest of Fort McMurray, Alberta to terminals in the Edmonton/Heartland region. TransCanada and Brion will each own 50 per cent of the $3 billion pipeline project, which will be operated by TransCanada. Brion has also entered into a long-term transportation service contract in support of Grand Rapids.
The project is expected to begin construction in Fall 2014 and become operational in stages, with initial crude oil transported by mid-2016. The full system will have an ultimate capacity to move up to 900,000 barrels per day (bbl/d) of crude oil and 330,000 bbl/d of diluent.
The Grand Rapids application was submitted to the AER in August 2013. A public hearing on the application concluded on July 18, 2014.
Grand Rapids will reapply to the AER to build and operate the Saleski terminal when required, and will submit a new application for a revised route to cross the Athabasca River.
Grand Rapids is an important component of TransCanada’s capital program, which includes $38 billion of commercially secured projects expected to be completed by the end of the decade. Of these, $3.5 billion of projects are planned to expand TransCanada’s liquids pipeline network in the province of Alberta. This includes the Northern Courier and Heartland pipelines and TC Terminals projects, and a new storage terminal facility at Hardisty. TransCanada is committed to ensuring all of these projects are built and operated safely, responsibly and with minimal environmental impact. These liquids pipeline and terminal projects are supported by strong market fundamentals and underpinned by long-term contracts.
Source: TransCanada Corporation