New business strategy from TransCanada
After years of fighting with the United States government and environmentalists, the TransCanada is now looking at sending crude oil from Alberta to east all across Canada to Quebec City for processing. The TransCanada first proposed its Keystone XL Pipelines in 2008 to the U.S. government and expected to be in operation by 2012. The XL line expected to transport crude from Alberta to the Gulf Coast where Valero Energy and Royal Dutch Shell are getting ready to process. Processing molasses like crude is expensive and generates more greenhouse gas than drilling. Environmentalists objected to the proposal and the current administration used delaying tactics.
Tired of what is happening, TransCanada started to look to the east and west Canada for alternatives in 2011. It is expecting to submit an application to the Canadian regulators later this year. The business strategy will allow it to transfer 1.1 million barrels per day and with help from converting an existing 1,800 mile long natural gas pipeline into gas conduit it expect to finish the project by 2017. China has invested heavily on Alberta’s oil sands and expected to benefit from the pipeline once developed. Currently heavy crude finds its way to the gulf through rail.
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