CALGARY, Alberta, May 3 (UPI) -- More than $900 million is needed to ensure pipeline capacity can keep up with the expected increase in Canadian oil production, TransCanada said.
TransCanada announced it has industry support to go ahead with the construction of its Heartland pipeline project and an associated terminal.
The projects are expected together to cost more than $900 million. The pipeline could eventually carry as much 900,000 barrels of oil per day, while the terminal would have a storage capacity of 1.9 million barrels.
TransCanada President of Pipeline Development Alex Pourbaix said the projects would help expand access to the U.S. and Eastern Canadian markets.
"With Alberta oil production projected to increase by almost three million barrels per day over the next 15 years, it is important to have the right infrastructure in place to move these resources safely and reliably to market at the right time," he said in a statement.
TransCanada is trying to get approval from the U.S. government to build the cross-border Keystone XL pipeline to link Alberta markets to southern U.S. oil refineries.
The company said the 125-mile Canadian pipeline and terminal should go into service by 2015.