The expansion will complement the overall Keystone pipeline system, with the first phase expected to begin delivering crude oil to the US Midwest in mid-2010. The order value for Siemens is more than $180m.
The Keystone expansion recently achieved a regulatory approval for the Canadian portion of the project. This expansion will be the first pipeline to directly connect a reliable supply of Canadian crude oil to the largest refining market in North America. Shippers have committed crude oil that amounts to 75% of the expansion capacity for an average term of 17 years, reflecting the value the project has to the overall market, the company said.
Jim Mugford, vice president of oil and gas at Siemens Canada, said: “TransCanada’s decision to work with Siemens reinforces our strategy of combining a broad range of integrated technology, equipment and expertise in pipeline applications, and the ability to successfully execute complex cross-border projects.
“TransCanada benefits by receiving an innovative solution that offers better reliability, with higher efficiencies and lower risks, and at the same time, Siemens is pleased to be given the opportunity to be able to support TransCanada in delivering reliable supplies of energy across the North American continent.”
Siemens will supply pumps and electrical equipment for 38 pumping stations, which includes 104 pumps and motors, as well as variable-frequency drives, E-houses with medium- and low-voltage switchgear, and unit control systems for each pumping station. Furthermore, Siemens will be responsible for system integration of the components and will also deliver four high-voltage substations, the company said.
The Siemens’ pipeline portfolio encompasses compressors with electric or gas turbine drives, transformers, substations, breakers, and automation, communications and safety equipment.
