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TransCanada will need more pipe if XL gets OK

Feb 05, 2014 | 02:18 PM | Thorsten Schier

Tags  TransCanada, Keystone XL, pipe, presidential permit, X70, Thorsten Schier


NEW YORK — TransCanada Corp. will have to order more pipe if it receives a presidential permit for its proposed Keystone XL pipeline from the oil sands in Alberta to Cushing, Okla.

"We do know that based on the re-route through Nebraska ... that there will be additional equipment and pipe we have to order," a company spokesman told AMM in an e-mail. "We do not expect we would need to do that before (the permit) is received."

The State Department late last week issued a positive final environmental assessment of the project’s re-route, which sources said should spur its approval (amm.com, Jan. 31).

Meanwhile, the Calgary, Alberta-based company is working to maintain the pipe already produced for the project. "We have been actively maintaining the coatings, etc. while we have waited for the approval process to be completed. This has been one of the costs we have incurred as a result of the delay—ensuring that we properly store and maintain equipment like the pipe, pumps, motors, fittings and other equipment we had to previously order," the spokesman said.

A TransCanada executive said in early 2012 that the company had procured about 820,000 tons of 36-inch-diameter X70 pipe for the line at that point (amm.com, Feb. 9, 2012).

Market sources said the coatings would be the most significant part of the already produced pipe to maintain, with one trader saying that the coatings used on the Keystone XL pipe would typically have a two-year warranty if the pipe was not put in the ground immediately.

TransCanada does not expect to have to replace any of the pipe already made for the project due to its maintenance program. "We do not expect that (the pipe) would be impacted as a result of the program we have in place, but if there was any question our construction and pipe integrity teams would make that call," the spokesman said.




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