Keystone two-step

In the absence of any fresh stirrings, good or bad, in the Obama administration, TransCanada has created its own news on the Keystone pipeline system.

The Calgary-based company is testing the open market for Keystone XL by inviting additional shipping commitments, while offering an additional 10,000-15,000 barrels per day of capacity on the original Keystone line.

Interested parties have been given until Sept. 2 to submit binding bids for XL, the planned 830,000 bpd system that is designed to cover 2,600 miles and deliver oil sands bitumen from Alberta and Bakken crude from North Dakota to key outlets in Wood River and Patoka, Illinois, Cushing, Oklahoma, and Port Arthur, Texas.

TransCanada offered no explanation for the open season, but has repeatedly insisted that none of its contracted shippers has shown any desire to quit the project, despite the continued delays in negotiating the regulatory system and courts in the United States and the absence of any commitment on when President Barack Obama will decide whether to issue a permit.

A TransCanada spokesman said there have been no changes to the existing Keystone link from Alberta to the U.S. Gulf Coast, but technological changes have allowed the company to expand capacity from the current 590,000 bpd.

He said that contracting extra volumes have been possible because of “technological advancements” that have resulted in operating efficiencies.

A deadline of Sept. 12 has been set for shippers to submit bids for the extra space.

About 90 percent of capacity on the pipeline is reserved for committed shippers, with the remainder available for spot volumes.

- Gary Park