TransCanada Corp. gets go-ahead on pipes

CALGARY, Alberta, Jan. 11 (UPI) -- The U.S. Department of State issued a favorable environmental-impact study of TransCanada Corp.'s Keystone pipeline.

The company announced its partnership received a favorable assessment from U.S. regulators. The final EIS said the project will have "limited" negative effect on the environment.

The EIS found the pipeline project and its Cushing extension "would result in limited adverse environmental impacts," TransCanada officials said.

Keystone is scheduled to transport crude oil along a 2,147-mile pipeline from Canada to the U.S. Midwest markets in Illinois and to Cushing, Okla.

"This outcome is another significant milestone in advancing the Keystone Pipeline project," said Hal Kyisle, TransCanada president and chief executive. "We plan to begin construction in second quarter 2008 to achieve an in-service date of fourth quarter 2009 in order to move the growing supply of Canadian crude oil to key U.S. markets."

The Canadian company said it hopes to receive a permit that will authorize construction and operation of facilities at the U.S.-Canada border crossing in mid-February.

Applications for other U.S. regulatory approvals are expected in the first quarter of 2008.

The $5.2 billion project will have pipeline in Canada converted from natural gas to crude oil transmission and pipeline and pump stations in the United States.

TransCanada said the system should be capable of delivering 435,000 barrels per day initially once the first phase is complete.