Crude Oil Flows to U.S. Refiners in Texas

Houston Lateral pipeline more than doubles refining access for Keystone shippers

The Houston Lateral Pipeline and the associated Houston Tank Terminal is the latest phase of the pipeline system from Alberta to Texas to become operational, helping to further drive North American energy security.

“The pipeline and terminal provides North American producers with another option to connect domestic crude oil with the world’s most efficient refiners in the U.S. Gulf Coast,” said Richard Prior, TransCanada’s Vice President, Liquids Projects.

“It also offers American refineries the opportunity to use more North American crude oil – making us less dependent on oil from countries that don’t share North American values. And we are very proud to be a part of that effort.”

Pipeline extension = increased access to refining capacity

With the pipeline extension now complete – incorporating the 48-mile (77-kilometre) Houston Lateral Pipeline and associated tank terminal – the project represents another milestone for the company and its key strategic hub in the United States.

“This latest effort extends the Keystone Pipeline System to Houston, and more than doubles access to refining capacity for Keystone shippers in the U.S. Gulf Coast,” said Prior.

Shippers will now have access to over 2.2 million barrels per day (b/d) of refining capacity  in the Houston and Texas City, Texas market area. That’s in addition to the 1.5 million b/d of refining capacity the Keystone Pipeline System currently has access to in the Port Arthur, Texas market area.

Connecting domestic crude oil with refiners

Our 4,300-kilometre (2,700 mile) Keystone Pipeline System transports approximately 20 per cent of Western Canadian crude oil exports to key refineries in the U.S. Midwest and Gulf Coast, where it is converted into gasoline and other products that we rely on every day, like cell phones, bandages, computers, credit cards, even oxygen masks and more. Since it began operation in June 2010, Keystone has safely transported more than 1.3 billion barrels of crude oil from Canada to U.S. markets.

Meanwhile TransCanada is partnering with Magellan Midstream Partners  in the area to develop an additional 24-inch-diameter crude oil pipeline — a 50/50 venture between the parties — to connect TransCanada’s Houston Terminal to Magellan Midstream Partner’s East Houston Terminal.

That will provide further access to a number of processing facilities in the Houston/Texas City refinery complex.

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