US-based energy company ConocoPhillips has acquired a 50% ownership interest in the energy infrastructure company TransCanada Corporation's Keystone oil pipeline.
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.
'The Keystone Pipeline will play a significant role in integrating ConocoPhillips' upstream and downstream assets and ensure market access for growing Canadian production,' Jim Mulva, chairman and CEO of ConocoPhillips, declares.
Affiliates of TransCanada Corporation will be responsible for constructing and operating the 3,456-kilometre (2,148-mile) Keystone Pipeline, which will be capable of delivering 590,000 barrels a day of crude oil from Hardisty, Alberta, to US mid-west 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 a day with an average duration of 18 years.