Home » BLOG » After Keystone XL rejection, TransCanada Corp looks to beef up U.S. Gulf Coast presence

After Keystone XL rejection, TransCanada Corp looks to beef up U.S. Gulf Coast presence

To bolster the Houston Lateral's connection to Gulf Coast markets, TransCanada and Magellan Midstream Partners LP are building a US$50 million pipeline to ship 200,000 bbd between TransCanada's under-construction Houston terminal and Magellan's East Houston terminal.

With its ambitious Keystone XL project rejected by U.S. President Barack Obama, TransCanada Corp. is pursuing more sensible developments in the U.S. Gulf Coast to make inroads in the oil refinery complex.

TransCanada launches US$15B lawsuit against U.S. government for rejecting Keystone XL


TransCanada Corp. said Wednesday it intends to file challenging under the North American Free Trade Agreement (NAFTA) seeking US$15-billion in damages from the United States government over President Barack Obama’s denial of the Keystone XL pipeline

Read more

The company’s US$600 million Houston Lateral pipeline and tank terminal is placed in the future on stream through the second quarter of the year, connecting the existing Keystone pipeline system to refineries in Houston, Paul Miller, president of liquids pipeline said in an interview.

“Today we probably move 300,000 (barrels each day) plus of crude oil from Canada towards the U.S Gulf Coast, and we represent about a third of this,” Miller said.

“As we have seen the connection in our system going to these extra markets within the U.S. Gulf Coast we would look to increase both our share as well as the absolute volume.”

To bolster the Houston Lateral’s link with Gulf Coast markets, TransCanada and Magellan Midstream Partners LP are creating a US$50 million pipeline to ship 200,000 bbd between TransCanada’s under-construction Houston terminal and Magellan’s East Houston terminal.

“It’s small from a dollar perspective, but it is hugely significant from a connectivity perspective, providing connectivity to both Houston and the Texas City refineries,” Miller said.

Related

About privatefinancetips

x

Check Also

U.S. job growth slows and profits tumble as a strong dollar and cheap oil undercut earnings

WASHINGTON – U.S. economic growth slowed within the fourth quarter, although not as sharply as ...

The REIT sector’s next challenge: CEO succession and board renewal

Getting there C with new chief executives and groups of new directors for that firms ...

Commodities could be headed for ‘buffalo jump’ as investors rush for the exits, Barclays warns

Commodities including oil and copper are in chance of steep declines as recent advances aren’t ...