TransCanada said that it has secured enough shipper commitments to proceed with its $8bn Keystone XL pipeline project.
The energy infrastructure company, which has just concluded an open season for the near 1,900km pipeline system, has secured about 500,000 barrels per day of firm and 20-year commitments.
It said that interest in the pipeline project continues to be strong and that it will pursue additional long-term contracted volumes.
The 36inch diameter pipeline will begin at Hardisty in the Canadian province of Alberta and extend south to Steele City in the US state of Nebraska.
It has been designed to have a capacity to transport more than 800,000 barrels per day of heavy crude from Canadian oil sands in Alberta into Nebraska.
TransCanada said that the announcement of securing shipper commitments builds on the decision by the Nebraska Public Service Commission in late November 2017 to approve the route of the pipeline through the state.
The firm said that it continues to engage with communities where the pipeline will be built.
TransCanada president and CEO Russ Girling said: “Over the past 12 months, the Keystone XL project has achieved several milestones that move us significantly closer to constructing this critical energy infrastructure for North America.
"We thank President Donald Trump and his administration for their continued support and appreciate the ongoing efforts of Nebraska Governor Pete Ricketts, the Nebraska legislative and congressional delegation, Omaha Federation of Labor, Nebraska State AFL-CIO, our customers and various stakeholders to advance this project.”
The company revealed that construction preparation of the pipeline has begun and will pick up as the permitting process advances throughout the current year, with main construction likely to start in 2019.