Oil Sands Truth: Shut Down the Tar Sands

"Canadian energy company plans another pipeline in U.S."

Canadian energy company plans another pipeline in U.S.
Last Updated: Monday, August 6, 2007
The Canadian Press

TransCanada Corp. is joining with Northwest Natural Gas Company on a proposal to build a natural gas pipeline in Oregon that could cost the companies up to $700 million US.

The project continues the rapid expansion of infrastructure by major Canadian energy companies to transport Canadian oil and natural gas to energy-hungry American consumers as production from the northern Alberta oilsands is slated to rise sharply over the next decade.

The two companies announced Monday they'll form a new venture, Palomar Gas Transmission LLC, to design, construct and own the Palomar pipeline to serve residential and industrial customers in the state. A separate line could also be built to link up with a proposed new liquefied natural gas plant also proposed for the Pacific Northwest region.

The main pipeline would extend approximately 354 kilometres from northwestern Oregon to north-central Oregon and would serve growing markets in Oregon, the Pacific Northwest and the western U.S., the companies said in a release.

If approved, the new transmission line is scheduled to begin service in late 2011. The two lines would have a price tag of between $600 million US to $700 million US if both are built.

In June, Calgary-based oil shipper Enbridge Inc. and U.S. giant ExxonMobil Pipelines Co. said they were looking to build a pipeline to ship Canadian oilsands crude from Illinois to Texas.
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Recently, TransCanada announced plans to expand its proposed Keystone pipeline from Illinois to Cushing, Okla., and increase Keystone's transportation capacity to 590,000 barrels a day. Other Canadian companies also have plans to build more oil and gas pipelines in Canada to transport energy to Canadian and U.S. markets.

TransCanada, based in Calgary, has a network of more than 58,739 kilometres of pipeline that taps into virtually all major gas supply basins in North America. The company also is a major storer of natural gas and a growing independent electricity generator.

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