THE Keystone oil pipeline project got closer to reality with the recent announcement that project owner TransCanada has secured long-term contracts with multiple oil shippers. Calgary-based TransCanada announced its plan last year to build a 2,930-km pipeline from Hardisty, Alberta, to Patoka, IL; the pipeline's current route – which is subject to change – is set to run through the Dakotas, Nebraska, Kansas, Missouri, and Illinois. The shippers' contracts, which were secured through an open bidding season, total 340,000brl/d, with an average contract length of 18 years. "We were really encouraged with the level of support we've had from shippers," said Jennifer Varey, senior communications specialist for TransCanada. "Basically, what this tells us is that we've got the shippers' support. It demonstrates that this is economically viable for us, and we're going to continue to proceed." When it's finished, the $2.1-billion pipeline will be capable of transporting approximately 435,000brl/d of crude oil from Alberta to markets in the United States. Varey said the next step is to proceed with engineering work, continue to do consultations with landowners, and start submitting regulatory applications. "All of that should help us define a route and move us toward construction in late 2007," she said. She went on to say that there's no definite date by which the route will be set, but the hope is March or April. Until then, TransCanada is continuing talks with shippers and the company is compiling a list of landowners who will be impacted. TransCanada is also considering extending the route to Cushing, Okla., and Fort Saskatchewan, Alberta. In November, TransCanada staff travelled to the United States to host 'open houses' designed to answer questions, and address concerns about the pipeline. "We were very well-received," Varey said. "People seemed to see the benefits of the pipeline as far as taxes go. They also had a lot of questions. Landowners wanted to know how we would compensate them and others wanted to know about the safety of the pipeline. We place the highest priority on safety."