ConocoPhillips Takes Half Ownership In Pipeline
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Updated: January 22, 2008, 9:32 AM
Oil company ConocoPhillips has taken a 50-percent ownership stake in a proposed oil pipeline that would deliver Canadian crude to U.S. refineries.
Houston-based ConocoPhillips and TransCanada Corporation of Alberta, Canada, made the announcement today.
In 2005, the companies signed an agreement to use the Keystone pipeline to deliver crude to ConocoPhillips' Wood River, Illinois, and Borger, Texas, refineries, which are being expanded. The deal also gave ConocoPhillips the right to up to a 50-percent ownership stake in the pipeline.
TransCanada plans to start construction this spring on the 590,000-barrel-a-day pipeline, a route of nearly 2,200 miles crossing North Dakota, South Dakota, Nebraska, Kansas and Missouri.
The South Dakota Public Utilities Commission has wrapped up testimony on TransCanada's construction permit application, but the commissioners have not yet issued a decision.
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