The C$275m ($274.8m) Keystone Hardisty terminal forms the first phase of the Keystone XL pipeline project, which TransCanada reapplied for permit recently, after its initial application for an alternative route for the line was rejected by the US government.
TransCanada president and chief executive officer Russ Girling said, "The open season held earlier this year for the Keystone Hardisty Terminal was very successful and confirms strong demand from Western Canadian producers for new infrastructure to allow them to move crude oil into the Keystone System."
TransCanada received binding, long-term commitments of more than 500,000 barrels per day, leading it to expand the proposed crude oil batch accumulation tankage and pipeline infrastructure at the terminal to 2.6 million barrels from the current two million barrels.
If approved, the project is expected to be operational by the end of 2014.
The Keystone Pipeline System is an operational 3,467km pipeline delivering over 500,000 barrels per day of crude oil from Canada to US Midwest markets and Cushing, Oklahoma.
TransCanada expects to receive the presidential permit and begin construction of Keystone XL in the first quarter of 2013, with completion slated no later than early 2015.
