A previously signed memorandum of understanding committed ConocoPhillips to ship crude oil on the pipeline and gave the right to acquire up to 50% ownership interest.
Affiliates of TransCanada will be responsible for constructing and operating the 3,456km Keystone pipeline, which will be capable of delivering 590,000 barrels per day of crude oil from Hardisty, Alberta, to the US midwest markets at Wood River and Patoka, Illinois, and to Cushing, Oklahoma.
Initial deliveries to Patoka are expected to begin in late 2009. Keystone has secured firm long term contracts of 495,000 barrels per day with an average duration of 18 years.
Jim Mulva, chairman and CEO of ConocoPhillips, said: The Keystone pipeline will play a significant role in integrating ConocoPhillips’ upstream and downstream assets and ensure market access for growing Canadian production.
