JV Selected By TransCanada To Build Keystone XL Pipeline

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TransCanada Corp. has selected Quanta Services-owned Price Gregory Services to be part of MPS Constructors, a joint venture made up of Michels Corp., Price Gregory Services and Sheehan Pipe Line Construction, that will build the 1,179-mile section of Keystone XL between Hardisty, Alberta, to Steele City, NB, and related infrastructure that are part of the project.
  The project remains subject to TransCanada obtaining all required approvals and completing the contract with MPS. At this time, the work scope of each joint venture member is being defined along with finalization of the joint venture terms as well as the associated contracts.
  The Keystone XL Pipeline totals around 1,661 miles of 36-inch crude oil pipeline that will be built from Hardisty and extend southeast through Saskatchewan, Montana, South Dakota and Nebraska. The pipeline would then incorporate the existing Keystone Pipeline Phase II through Nebraska and Kansas to serve markets at Cushing, OK.
  If construction begins early in 2012, Keystone XL Pipeline is scheduled to be operational in the second half of 2013.
  Evraz and Welspun confirm they are manufacturing pipe for Keystone XL. Welspun built a facility in Arkansas where they are producing their share of the pipe. Evraz is producing pipe in Saskatchewan.
  In other news, TransCanada announced on November14 it would reroute the planned Keystone XL Pipeline out of the environmentally sensitive Sandhills area of Nebraska.
  Alex Pourbaix, TransCanada’s president, Energy and Oil Pipelines, said,  “I can confirm the route will be changed and Nebraskans will play an important role in determining the final route.”
  Working together with the State Department, Nebraska’s Department of Environmental Quality will conduct an environmental assessment to define the best location for Keystone XL in Nebraska.  We will cooperate with these agencies and provide them with the information they need to complete a thorough review that addresses concerns regarding the Sandhills region.
  It is expected that once the pipeline is operational, Nebraska could see more than $150 million in property taxes to county and other local governments during the operating life of the pipeline – money that could be used to build new roads, schools and hospitals.
  Construction of the pipeline in Nebraska would consist of five or six new pump stations and over 275 miles of new pipeline.  The project is expected to employ over 2,200 construction workers in the state.