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Link From Canada Oil Sands to Gulf Coast Refineries Proceeds

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Calgary, Alberta-based TransCanada said on Jan. 26 that it has contracted with enough companies to proceed with the 1,980-mile Keystone XL pipeline. It would be the first to transport crude oil from Canada’s oil-sands region to refineries on the U.S. Gulf Coast. The proposed $12-billion, 36-in.-dia pipeline could move up to 150,000 barrels of oil per day. Together with the existing Keystone pipeline, the two lines would move up to 250,000 bbl daily. The project, which is contingent on U.S. State Dept. approval, is opposed by several environmental and local groups. The American Petroleum Institute says the pipeline is “a matter of critical national interest” to lessen U.S. dependence on other oil sources. If approved, TransCanada says the pipeline could be in service by the first quarter of 2013. It contends that the pipeline would boost the price of Canadian oil-sands crude by $3 per barrel due to additional refining.

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