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January 22, 2014 — Gulf Coast Project: Delivering energy security
After four years of intense scientific and regulatory scrutiny and more than 15,000 pages of environmental reviews, we are proud to announce that the Gulf Coast Project, the safest pipeline ever built on U.S. soil, has begun delivering crude oil from Cushing, Okla., to state-of-the-art refineries in Texas. The completion of this US $2.3-billion crude oil pipeline provides a safe and direct connection between the important oil hub in Cushing and delivery points on the U.S. Gulf Coast.“This is a very important milestone for TransCanada, our shippers and Gulf Coast refiners, who have been waiting for a pipeline to supply crude oil directly from Cushing,” said Russ Girling, TransCanada President and Chief Executive Officer. “This project is a critical, modern piece of American energy infrastructure that allows producers to safely connect growing production with the world’s most efficient refiners on the U.S. Gulf Coast. It also provides those American refineries the opportunity to use more of the crude oil produced in both Canada and the United States for decades to come.”
Construction of the 487-mile crude oil pipeline involved more than 11 million hours of labor, completed by 4,844 U.S. workers and more than 50 contracts with manufacturers and companies building the pipeline and equipment from across the United States. It also includes the addition of 2.25 million barrels of new crude oil storage capacity at Cushing.
“The workers who helped build this project are in addition to 8,969 men and women who constructed the initial Keystone Pipeline system, and we are waiting for approval of Keystone XL so we can employ more than 9,000 more Americans, who are waiting to put their skills and experience to work,” added Girling.
The Gulf Coast Project not only had significant positive impacts on the lives of the men and women who built this world-class infrastructure project, but it also brought considerable economic impacts to the communities along the route. The project gave local businesses a healthy boost in sales, provided opportunities for growth and community investment.
Chadd Bryant of Prague, Oklahoma converted a drab and dank diner (formerly a filling station) into a bright and cheery rock-themed eatery with a long list of specials appealing to local palates. Chaddar’s Restaurant was already a success when pipeliners began arriving in 2013.
“Some people would see all this new business and immediately raise their prices. I wasn’t going to do that,” Chadd said. So he kept the faith with his regular clientele and then attracted the pipeliners who were drawn to the diner’s food and atmosphere. “I guess my business is up 15 to 20 percent.”
Chadd’s father Clifford said the town will see long-term benefits from the project as well, “As a member of the council, I keep a close eye on sales tax revenues. Before they came to town, we were doing about $80,000 a month. Last month was $161,000,” Clifford said. “Double is pretty impressive.”
Clifford also noted that Prague didn’t lose its head when the incremental revenue started rolling in.
“Once those guys leave, a lot of that revenue is still going to be here. That extra sales tax revenue has been going in the bank. Long after they’re gone, that money will be available for street improvements, for emergency response — it’s the gift that keeps on giving.”
Joe Penland’s Quality Mat company, in Southeast Texas, is another regional business that partnered with TransCanada and helped make the Gulf Coast Project safer.
“I came up with the idea of doing something prefabricated in a shop instead of out in the weather,” Penland recounted. By manufacturing mats built to different specifications and for various applications in a factory and then moving them to where they were needed, “you could increase productivity, you could increase safety on the job, everything would be recoverable; and, as the good Lord was behind us, and with my mother praying every day, it turned out to be the right thing.”
Quality Mat also gives back to its community in a big way. “When Quality Mat makes a dollar in profit, 30 to 33 cents goes back into the community,” much of it in women’s health programs, Penland said. “That’s something TransCanada and all my customers can feel good about. TransCanada — without TransCanada knowing — has already funded several hundred thousand dollars’ worth of free mammograms, free prostate checks, getting people through some local institutions here, navigating them through surgery, navigating them through treatments and extending some people’s lives.”
The Gulf Coast Project was designed to help relieve the glut of crude oil in places such as Cushing and will transport growing supplies of U.S. supply to meet refinery demand. But the impacts of the project are much broader than that. The benefits to these communities and our neighbors will live long after this project begins moving oil.
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July 18, 2013 — TransCanada’s Gulf Coast Project Nears Completion
TransCanada’s is excited to announce that the Gulf Coast Project is 90 percent complete. The pipeline will be ready for operation at the end of the year, and as we reach the completion of this critical piece of pipeline infrastructure, we can reflect on the numerous benefits that it has brought to communities in Oklahoma and Texas, as well as why it will be the safest pipeline ever built.Local Economic Benefits
During the first eight months of construction, the Gulf Coast Project brought numerous local benefits to surrounding communities. In that time, more than $20 million was spent locally during construction. This doesn’t include the money that was spent by the hundreds of Gulf Coast Project construction workers at grocery stores, gas stations, R.V. parks, motels, etc.
To-date, the Gulf Coast Project has provided more than 4,000 skilled American tradespeople and laborers jobs; not to mention all the project managers, environmental specialists and consultants involved on this project.
Many people were eager for this project to begin so they could get back to full-time employment. The jobs created by the operation of this pipeline are supporting local economies, which is ultimately supporting the U.S.
Not only is this project creating valuable employment opportunities, but it has also relied on materials that are being sourced within the U.S.
For example, the pipeline has required hundreds of millions of dollars’ worth of materials and related services for items such as the steel pipe, thousands of fittings, hundreds of large valves, fabrication of piping assemblies and structural steel for supports, and thousands of other pieces of equipment used to build such things as transformers for pumping stations, meters to measure the amount of oil delivered, large electric motors for operating pumps and cabling and electrical equipment to connect our vast pipeline monitoring systems.
We have developed manufacturing relationships with more than 50 suppliers across the U.S. This allows us to meet the manufacturing needs for this project as well as support local economies.
As the Gulf Coast Project begins to operate, it will continue to bring positive economic benefits to surrounding communities.
Safety and Technology
As one of North America’s leading energy infrastructure companies, our top priority is the safety of the public and our employees. Safety defines our company and our culture, and ensures that we earn our social license to operate.
It is our commitment to world-class safety standards that ensures that the Gulf Coast Project will be the safest pipeline ever built.
The Gulf Coast Project has only used the most modern construction techniques and equipment, and the most qualified pipeliners in the business. We have led the way in the use of high-strength steels and the latest corrosion-resistant coatings, and we also require every weld made on the pipeline to be inspected by qualified independent inspectors.
Our team of experts only operates the most sophisticated equipment available to ensure oil flows down our pipeline system safely and efficiently. The safety features on this pipeline include:
- Technology capable of isolating any section of our pipeline either automatically at the valve, or remotely from our control center in Calgary
- Information that is transmitted from thousands of data points along our pipelines to our control centers
- 24/7 monitoring of pipeline operations by highly-trained staff who shut down the pipeline at the first sign of a problem until the cause of the alarm is determined and confirmed
- Pipeline control staff who are required to undergo extensive training that includes working on a pipeline simulator before they are certified to operate pipeline monitoring systems
As our first priority is always safety, we will continue to ensure that the Gulf Coast Project is the safest pipeline ever built.
Testing
The Gulf Coast Project is going through rigorous testing before it will be permitted to go into operation. This testing program will identify some parts of the project that need further attention, and in some cases, replacement.
We have been digging up portions of the Gulf Coast Project in order to deal with some imperfections that our inspection program has identified. The Gulf Coast Pipeline is being held to a higher standard than any other pipeline project — because TransCanada agreed to 57 special conditions regarding construction and operation of the Project, which have reduced the tolerances we will accept for minor imperfections.
This shows that we are serious about operating to a higher level of safety and that we are doing everything that we reasonably can to make sure that this pipeline will operate safely for decades to come.
Looking Ahead
As the Gulf Coast Project nears completion, we will continue to work with our stakeholders along the pipeline route to ensure that they have the most-up-to date information on the project. We will continue to ensure that the Gulf Coast Project is the safest pipeline ever built, while also contributing valuable economic opportunities to local communities.
Up to 700,000 barrels a day of crude oil will enter the Gulf Coast region through this pipeline. We’re proud to be helping the U.S. ensure their energy security for years to come.
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July 3, 2013 — TransCanada Continues to Build Relationships with Tribes
This week’s edition of Just the Facts takes another look at TransCanada’s Native American relationships along the Gulf Coast Project through the perspective of Calvin Harlan, enrolled member of the Omaha Tribe and Tribal Liaison with the U.S. Tribal Relations Department.
Calvin’s involvement with Tribal Relations began two years ago while he was working as a contractor with an archaeological company along TransCanada’s Houston Lateral Project.
When the proposed Keystone XL Pipeline was re-routed in Nebraska, he became the Tribal Liaison on the Nebraska spreads where he worked with a member of the Alabama Coushatta Tribe as a tribal monitor.
Calvin’s involvement with the tribe continued when he began contracting on the Gulf Coast project: “I worked hand-in-hand with the Tribal Historic Preservation Officer (THPO) and met with members of the Tribal Council to explain to them what we were doing on the Gulf Coast Project. They gave their blessing and worked on the project by providing Tribal Monitors.”
During his time working on the Gulf Coast Project, Calvin worked directly with a THPO from the Alabama Coushatta Tribe, specifically answering any questions that arose.
Reflecting on his experience with the tribe, Calvin stated, “They were really engaged in this process, and some of the council went to Calgary for a tour of our Tribal Relations Department and the Keystone Oil Control Center.
Today, my relationship with them continues through meetings and constant updates. TransCanada also donated to the Alabama Coushatta Tribe’s Pow-wow celebration this year because it recognizes that it’s important to give back to the Tribal communities that we work with.”
TransCanada’s process of reaching out to a tribe is given the utmost respect and is always seen as a priority. First, TransCanada researches the tribal historical jurisdictions of each tribe along a proposed project.
Next, meetings are set up with the tribe, providing TransCanada the opportunity to introduce themselves and explain their reason for meeting. Tribes are then advised of all project details, ensuring they understand that the project’s goal is to have little effect on their traditional lands.
Even though most projects only cross historical jurisdictions, TransCanada has been in regular contact and communication with tribes on this project since 2008, ensuring that tribes always have the opportunity to voice any concerns that they may have with a project.
For example, if a project crosses a sacred area or a tribe has a specific interest in an area, TransCanada works with the tribe to mitigate potential impacts. “We often enter into partnerships with the tribes we work with to ensure that their concerns are being addressed” says Calvin. “Tribal groups respect the time and effort that TransCanada devotes to ensuring their best interests are considered.”
When tribes do raise questions, TransCanada does its very best to resolve any issues.
For example, if there is a concern with pipeline construction crossing a sacred area, TransCanada’s Project Archaeologist would advise the Environmental Inspector to stop construction for the length of time needed to address the concern and move on.
“All concerns are taken into consideration, and communication is always key to resolving issues,” says Calvin. “I would say that TransCanada has done its best to make contact with tribes along the Gulf Coast Project, taking into account their historical jurisdictions and historical properties and showing great respect for the native people of the U.S. TransCanada practises a good neighbor policy and strives to live by this policy through respect and understanding of all tribes, their inherent differences and similarities, and puts forth all effort to work with these tribes.”
In conclusion, the Alabama-Coushatta is just one example on how TransCanada has partnered with Native American Tribes on the Gulf Coast project. Calvin noted that the most important thing is that TransCanada keeps the lines of communication open with all tribes: “We will do our very best to respect and honor the tribes we work with.”
Visit TransCanada’s Community, Aboriginal and Native American Relations section on TransCanada.com to learn more about TransCanada’s Tribal Relations initiatives.
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May 9, 2013 — Cultivating Positive Tribal Relations
Communication. Engagement. Commitment. This is TransCanada’s approach to Tribal Relations. No one understands this philosophy better than TransCanada who actively collaborates with tribal communities along the Gulf Coast Project.
TransCanada recognizes the importance and dedication that needs to be in place to build relationships. The company engages with tribes on a regular basis, fully understanding that constant communication is the key to being a good neighbor and building long-term trust. Communication is a two-way street at TransCanada — the company ensures that we are always engaging with tribal groups while also keeping our doors open so that tribes can talk to the company at any time.
Building solid relationships with tribes goes beyond just discussion and agreements. TransCanada proactively collaborates on cultural, environmental and education initiatives as well. “We provide training programs and other tools and continue to find new ways to support our understanding of history, culture and the role Native American people play in the United States today,” explains Bobby Gonzalez who works with tribal communities through his position in TransCanada’s Community, Safety and Environmental department. “We want this to be an integral part of our business.”
Having a deep level of cultural awareness allows tribal communities to enhance dialogue to discuss any regulatory or construction concerns. It also provides a foundation for tribe members to become involved in TransCanada’s operations.
For example, the Gulf Coast Project currently has five tribal monitors in-field helping to identify any unexpected sites of cultural importance that could be encountered during the construction process.
In addition, safety training has been provided to over 20 tribal people, including elected tribal members of different tribes. This allows them to visit TransCanada’s right-of-way during construction and to participate in TransCanada’s Tribal Monitoring Program.
The Gulf Coast Project doesn’t cross any federally owned tribal land, but TransCanada continues to engage tribal governments, leaders and their communities to ensure that no sacred areas are being damaged within their tribal homelands or tribal jurisdictions.
Early engagement and open dialog is very important in maintaining tribal relationships, especially in sustaining the relationships that TransCanada has with Tribal Historic Preservation Officers (THPO) and Tribal Employment Rights Officers (TERO).
THPOs review projects related to federal undertakings that occur within or near reservations or areas originally inhabited by a tribe. THPOs then work with federal agencies and companies, such as TransCanada, to ensure that sacred cultural areas are not disturbed.
In addition, TEROs work with TransCanada to ensure that there are job opportunities for tribal members and that they can be involved with different project phases such as safety, environmental, contracting, construction and monitoring.
The Gulf Coast Project wouldn’t be the success it is without the support and dedication of tribal governments, including tribal leaders, who care about protecting their interest by finding common ground with TransCanada.
As the Gulf Coast Project nears completion, TransCanada looks forward to continuing to build strong relationships with tribal communities along the pipeline route.
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April 24, 2013 — Construction Brings Many Benefits to Local Communities
The Gulf Coast Project is more than 70 percent complete, and throughout the first eight months of construction, it has brought numerous local benefits to surrounding communities. In that time, more than $20 million has been spent locally during construction. This doesn’t include the money spent by the hundreds of Gulf Coast Project construction workers at grocery stores, gas stations, R.V. parks, motels, etc.
In Prague, Okla., Cliff Bryant plays an active role in his community. He is a city council member, real estate developer and entrepreneur who owns the Bryant R.V. park. Since construction on the Gulf Coast Project, he has seen an increase in visitors to his park. In addition, he explains that the project has resulted in a boost to public coffers through sales taxes from money being spent in the community. “Our average monthly sales tax in Prague is four percent; it’s usually about $80,000 per month. The last three months, we’ve hit between $150,000 to $160,000 per month. We can safely say that it (Gulf Coast Project) has doubled our sales tax (revenue),” explains Cliff.
Chadd Bryant (Cliff Bryant’s son) also lives in Prague and is the owner and manager of Chaddar’s Restaurant. Chadd says, “Volume has increased over the last four to five months,” noting that his business has seen an increase in customers who work on the pipeline. Hearing stories like these help to validate the economic benefits of the Gulf Coast Project.
Learn more on the TransCanada Blog: Opportunities knock in Prague, Okla.
To-date, the Gulf Coast Project has provided more than 4,000 skilled American tradespeople and laborers jobs; not to mention all the project managers, environmental specialists and consultants involved on this project. Many people were eager for this project to begin so they could get back to full-time employment. The jobs created by the operation of this pipeline are supporting local economies, which is ultimately supporting the U.S.
A recent article in Fuel Fix quoted Union Business Manager, Danny Hendrix, from Pipeliners Local 798, a national union based in Tulsa, Oklahoma. “These are really good-paying jobs. They provide not only a good living wage, they provide health care and they also provide pension,” said Hendrix. The union currently has 250 of its members working on the Gulf Coast Project.
Not only is this project creating valuable employment opportunities, but it also requires materials that are being sourced within the U.S. For example, the pipeline requires hundreds of millions of dollars’ worth or materials and related services for items such as the steel pipe, thousands of fittings, hundreds of large valves, fabrication of piping assemblies and structural steel for supports, and thousands of other pieces of equipment used to build such things as transformers for pumping stations, meters to measure the amount of oil delivered, large electric motors for operating pumps and cabling and electrical equipment to connect our vast pipeline monitoring systems.
TransCanada has developed manufacturing relationships with more than 50 suppliers across the U.S. This allows us to meet the manufacturing needs for this project as well as support local economies.
TransCanada is proud of the relationships that have been built in local communities along the Gulf Coast Project. As jobs are created and construction continues, TransCanada looks forward to completing this critical infrastructure project for the benefit of America.
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April 12, 2013 — The Safest Pipeline Ever Built
As one of North America’s leading energy infrastructure companies, our top priority is the safety of the public and our employees. Safety defines our company and our culture and ensures that we earn our social license to operate. It is our commitment to world-class safety standards that ensures that the Gulf Coast Project will be the safest pipeline ever built.
A former acting administrator for Pipeline and Hazardous Materials Safety Administration (PHMSA) and noted transportation safety expert, Brigham McCowan, endorses the project by saying that, “TransCanada’s commitment to safety permeates the company’s culture. Safety is a key tenant of the company’s principles, and more care and planning has gone into this project than any other.”
Currently, there are more than 2.5 million miles of underground pipelines in the United States. Pipelines are the safest method of moving oil, safer than tankers, trucks or rail (Source: U.S. Department of Transportation). Each day in the U.S. more than 200,000 miles of pipelines move oil and other energy products safely to where they are needed — that’s enough pipe to circle the earth eight times. Pipelines are 40 times safer than rail and 100 times safer than trucks on our highway (Source: Phil Hopkins, International Petroleum Technology Institute — 2007).
Our pipelines are designed, built and operated to ensure the safety of our oil transportation system. We work to exceed industry and government standards to ensure public safety. The following provides an overview of how safety is incorporated into every phase of our pipeline development initiatives and operations.
Design
Our design requirements specify only top quality steel and welding techniques will be used throughout the system. Additional safety precautions are taken where pipelines cross roads and railway tracks, or where waterways are located near communities. Precautions include using thicker-walled pipe and burying the pipeline deeper in areas of higher population.
Construction
During construction, all welds are checked by an X-ray or ultrasonic process that can detect very small defects. To protect against corrosion, pipelines are coated.
Testing the Pipeline
Once the pipeline is welded together, it is pressure tested to ensure there are no defects. During these tests, the pipeline is subjected to pressures that are much higher than normal operating conditions to ensure safety under all conditions.
Operation
The entire transmission system is monitored 24-hours a day by highly trained TransCanada staff from computerized control centres. From there, our staff can detect changes in pressure along our pipeline and ensure that all facilities are operating properly. Pipeline control valves are located approximately every 20 miles(30 kilometres) along the pipeline. Should pressure in the pipeline drop (for example, because of a leak), the valves are designed to automatically shut off the flow of product. This limits the amount of oil that is released into the environment. During operations, a very low-voltage electric current called cathodic protection is applied to the pipe. This is another way we protect against corrosion.
Each region is fully staffed with qualified technicians who ensure the safe and efficient operation of our facilities in the area. In addition, regional offices have access to health, safety, and environmental coordinators and pipeline integrity specialists.
Monitoring
We monitor our pipeline system through a centralized high-tech centre 24 hours a day, 365 days a year. We use satellite technology that sends data every five seconds from 16,000 data points to our monitoring centre. When a drop in pressure is detected, we can isolate any section of our pipeline by remotely closing any of the dozens of valves on the system within minutes.
Maintenance
Electronic in-line inspection devices, known as “smart pigs”, are periodically used on sections of the pipeline system to detect defects. Hydrostatic testing and investigative digs visually inspect the pipe condition.
TransCanada has safely and reliably operated pipelines and other energy infrastructure across North America for more than 60 years. Our existing 3,467-kilometres (2,154-mile) Keystone pipeline from Alberta to Cushing, Okla., has delivered more than 280 million barrels of Canadian oil safely to U.S. markets since July 1, 2010. Our top priority is to ensure that our pipelines are built safely and reliably. It’s our commitment to you that the Gulf Coast Project will be the safest pipeline ever built.
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February 11, 2013 — Tyler Chamber of Commerce Supports Gulf Coast Project
Since the start of construction of the Gulf Coast Pipeline Project, back in August 2012, residents of areas surrounding our project have witnessed the many local benefits associated with the construction of this $2.3-billion pipeline.
Tom Mullins, President and CEO of Tyler Economic Development Council & Tyler Area Chamber of Commerce, has witnessed those benefits directly.
“We knew all along the Gulf Coast Project (GCP) was going to be a positive economic generator,” says Mullins, speaking on behalf of the Tyler Chamber of Commerce’s Energy Committee. “We quickly saw the positive local and economic impacts this would bring, and the self sufficiency that we would have.”
The 2000 member Tyler Chamber of Commerce has been an ardent supporter of the GCP, and with the help of Tom, has been crucial in drumming up support to garner the Chamber’s resolution of support for GCP, which led to Smith County and city of Tyler resolutions to support the pipeline.
Tom speaks passionately about the project, touching on the local benefits it will bring to his community, discussing the jobs that will be created throughout Tyler, both short and long term.
“We’ve been following the route, and monitoring the project since it began,” he says.
Tom and The Chamber have been positive supporters of the pipeline, and have noticed the benefits that it has been bringing to Tyler, Texas.
“Most people here support the pipeline,” says Tom. “It’s good for Tyler.”
With an increased population due to the Gulf Coast Project, the spin off job effect in Tyler is prevalent. The more people there are, the more business there is. And, more business means more jobs.
Tom has specifically noticed benefits in certain industries within Tyler.
“We’ve had economic spin off from people renting hotel rooms and RV spots,” says Tom.
With pipeliners coming into town, and looking for somewhere to stay, accommodation industries are the first to benefit from such projects. The food and service industries are also seeing spin off jobs. With pipeliners heading out to their favorite restaurants and filling up their vehicles with gas, Tyler is feeling the positive impacts throughout the town.
Construction of the Gulf Coast Project is currently 43 per cent complete. With the support of groups like Tom and the Tyler Chamber of Commerce, we are able to see the direct positive impacts within communities surrounding the Gulf Coast Project. Local relationships and community impacts are the center of all TransCanada’s projects, and are key in helping to build 60 years of success.
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January 18, 2013 — Creating Jobs and Boosting the Economy
TransCanada’s Gulf Coast Project provides significant benefits to the United States economy. With U.S. crude oil production growing significantly in Oklahoma, Texas, North Dakota and Montana, producers do not have access to enough pipeline capacity to move this production to the large refining market along the U.S. Gulf Coast. The Gulf Coast Project will address this constraint, while resulting in the creation of thousands of jobs.
Many people had been waiting for this project to get underway so they could get back to work on a regular basis. Pipeline construction work utilizes a large number of highly skilled workers which in turn requires high paying jobs. A project of this magnitude can generate the annual income for a worker and his family, bringing needed jobs to the construction industry and the region.
The Gulf Coast Project has created opportunities for many in Oklahoma and Texas – this includes pipefitters, welders, electricians, heavy equipment operators and more.
Not only are TransCanada and our contractors spending money with various rental/service businesses, but the presence of the pipeline construction workers in these communities also stimulates local small businesses, such as grocers, restaurants, hotels, trailer parks, convenience stores, banks and many more. The jobs created by the operation of this pipeline aid in the future success of our economy and the country.
In addition to the thousands of new construction jobs, the project requires material that is being sourced directly here in the United States.
The Gulf Coast Project requires hundreds of millions of dollars worth of materials and related services for items such as the steel pipe, the thousands of fittings, hundreds of large valves, fabrication of piping assemblies and structural steel for supports, and thousands of other pieces of equipment used to build such things as transformers for pumping stations, meters to measure the amount of oil delivered, large electric motors for operating pumps and cabling and electrical equipment to connect our vast pipeline monitoring systems.
TransCanada alone has contracts with over 50 suppliers across the U.S. manufacturing locations for our equipment include: Texas, Missouri, Pennsylvania, Michigan, Oklahoma, South Carolina, Indiana, Georgia, Maryland, New York, Louisiana, Oklahoma, Minnesota, Ohio, Arkansas, Kansas, California and Pennsylvania.
Construction of the Gulf Coast Project has created thousands of manufacturing jobs. Key support companies include: Welspun (pipe from Arkansas), Cameron (valves from Louisiana), Siemens (pumps, motors and related control equipment manufactured in Oregon, Ohio and Indiana) and dozens of other companies manufacturing everything from nuts and bolts to complex electrical control equipment.
The pipeline construction contractors must also procure hundreds of millions of dollars worth of equipment and materials. Hundreds of jobs will be created through requirements for fuel, coating materials, welding supplies, concrete materials, geo-textile materials, pipeline weights, native seed and other materials for reclamation, cathodic protection materials, crushed rock, valve and pigging assemblies, field trailer manufacturing, construction mats, power facility materials, aggregate manufacturing, road construction materials, water and waste facility manufacturing, fencing materials, communication infrastructure, bridge construction materials and many others.
As jobs are being created, and as construction continues, we’re looking forward to the completion of the Gulf Coast Project. This pipeline will transport growing supplies of U.S. crude oil to meet refinery demands in Texas. Gulf Coast refineries will be able to access lower-cost domestic production and avoid paying a premium to foreign oil producers, reducing cost and the United States’ dependence on foreign crude oil.
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January 8, 2013 — Positive Impacts on Local Economies
We’ve all been hearing about the great strides and successes our pipeliners have been making on the Gulf Coast Project, and after only five months we’re almost half of the way through construction.
Along with this success, positives can also be found on an economic level.
The Gulf Coast Project is a critical infrastructure project for the energy security of the United States and the American economy. With the significant growth of U.S. crude oil production in Oklahoma, Texas, North Dakota and Montana, producers don’t have pipeline access to move production to the large refining market along the U.S. Gulf Coast. The Gulf Coast Project will address this constraint, ultimately boosting the economy.
In the first five months of construction, the local economic benefit of the Gulf Coast Project has been significant. In that time, over $6 million has been spent locally during construction on section one alone.
These expenditures do not take into consideration the money spent in grocery stores, R.V. parks, gas stations and motels by the hundreds of individuals working on the project. Even without accounting for this significant area of spending, we are still producing strong economic benefits throughout local communities and counties impacted by our pipeline.
Positive economic impacts can be felt at all levels along our pipeline route. In Paris, Texas, the Sirloin Stockade restaurant has seen a direct impact on their business. Not only have they been used to cater team building events for TransCanada, but our contractors have taken a liking to their dinners as well. Ken Wall, a caterer for Sirlion Stockade, quickly identified a business opportunity behind this increased population
in Paris, and began handing out punch cards and gaining customer loyalty. An increase in their business not only has a positive impact on the Sirloin Stockade, but on Ken as well, and other people just like him. Personal impacts like this can be seen all across our operations.
Along with our investments back into local communities, the Gulf Coast Project will also benefit the economy with job creation. This project has provided much needed jobs for about 4,000 American trades people and laborers, as well as project managers, environmental specialists and consultants.
With increased spending in communities surrounding our operations and an influx in populations, local economies are getting a boost. From grocery stores, to convention centers, all are profiting from the construction of our Gulf Coast Project.
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December 17, 2012 — What is Dilbit?
A lot of questions have been raised recently about the crude oil produced from the Canadian oil sands and how it affects pipelines. Is it really crude oil? What is it mixed with before it goes into the pipeline? Is it more corrosive or dangerous than conventional crude? Does it float or sink if it spills in water? These are some of the most frequent questions we are asked, so we thought it would be helpful to provide some answers and present the facts about this important energy product.
Learn the facts about dilbit by reading the TransCanada Blog post: “Dilbit, what is it?”
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December 14, 2012 — Canadian Crude is Safe to Transport
TransCanada’s Gulf Coast Project is four months into construction, and well on its way to completion. One of the main objectives of this pipeline will be to carry domestic crude oil from states such as Oklahoma, Texas, North Dakota and Montana. Producers don’t have pipeline access to move production to the large refining market along the U.S. Gulf Coast, and our pipeline will be a great help in addressing this constraint.
Along with domestic American crudes, the Gulf Coast Project will eventually be shipping crude from the Canadian oil sands.
Over the past week, some media coverage has focused on the oil that will be transported through our Gulf Coast Project pipeline, specifically the Canadian crude from the oil sands. No matter where in the U.S. or Canada the crude oil is coming from, each batch will have its own unique characteristics but all of our oil pipelines are designed to carry a mix of light and heavier oils from various locations.
Refineries on the U.S. Gulf Coast and in the Midwest are already configured to take that oil and convert it into products that we rely on every day – gasoline, jet fuel, diesel and other consumer products.
In July, Battelle Memorial Institute – the world’s largest non-profit research and development organization, based in Columbus, Ohio – issued a report on the relative pipeline impacts of different types of crude oil. The report, which compared diluted bitumen, or dilbit, from the Canadian oil sands and conventional crude oils, concluded that “the characteristics of
dilbit are not unique and are comparable to conventional crude oils.” As well, this third-party report found that all types of crude oil have similar corrosive characteristics and that dilbit’s characteristics are similar to those of heavy sour conventional oils.Recently, Natural Resources Canada published a study measuring the corrosivity of bitumen-derived crude from the oil sands. They found that not only is dilbit not corrosive to pipe, but when four types of dilbit were compared with seven other kinds of oil, the dilbit is among the least corrosive.
The U.S. National Academy of Sciences is carrying out its own study on pipelines and products like oil sands derived crude. This independent study is being done for the Pipelines and Hazardous Materials Safety Administration (PHMSA), the national pipeline regulator, and is expected to be released in 2013.
In reviewing different types of oils and their impacts on pipelines, Battelle concluded that pipeline experience with the transportation of dilbit “does not indicate it behaves differently from typical crudes,” adding that this research finding “can be supported with images of the inside of such pipelines, which appear no different after many years of service than those shipping conventional crude.”
The Battelle report echoes the findings of the Final Environmental Impact Statement (FEIS) issued by the U.S. Department of State in August 2011. The FEIS concluded that “synthetic crude oil and dilbit (from the Western Canadian oil sands) are similar in composition and quality to the crude oils currently transported in pipelines in the U.S. and being refined in Gulf Coast refineries.”
TransCanada has been building energy infrastructure for more than 60 years. We have worked hard to earn our industry leading safety record – and that is something we are very proud of.
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December 6, 2012 — Good for Texas, Good for America
The plans have been laid out, the project has been approved and the workers have begun. The Gulf Coast Project, which runs from Oklahoma to the Gulf Coast began construction on August 6, 2012 in southeast Texas and is broken down into three “spreads”, or sections. Since construction started on this 485-mile, 36-inch-diameter pipeline, over 30 per cent of the pipeline’s construction has been completed.
In that time, construction equipment has cleared and leveled the surface to provide a level, safe platform for heavy equipment. Importantly, the topsoil was carefully segregated from the rest of the subsoil and piled alongside the area where the trench will be excavated.
Pieces of pipe, typically 80 feet long, were brought to the right-of-way on trucks and laid end-to-end near where the trench will be dug. The pipe, coated at the mill with an epoxy resin resistant to corrosion, was then beveled at the edges (to accommodate welding). After two pieces of pipe are welded together, the weld is subjected to rigorous inspection. The slightest flaw can require a weld to be repaired, re-welded and inspected again. A record is kept of each weld. After passing inspection, each weld is coated with epoxy resin.
Various methods are used to dig the trench in which the welded pipe was laid, depending on soil types and topography. Although typical pipeline regulation requires a depth of a cover of 30 inches in most areas, the Gulf Coast Project has agreed to four feet of cover as an added measure of safety.
In a process called “lowering in,” groups of machines known as “side booms” orchestrate the process of moving the welded lengths of pipe into the trench. The subsoil is carefully screened to remove any rocks or sharp objects that might scratch the epoxy coating on the pipe. The pipe is then completely covered by the subsoil, and the topsoil is returned to the trench line and carefully graded to the previous contours.
The Gulf Coast Project is being built using the latest proven technology and techniques, and will benefit from TransCanada’s construction expertise developed over 60 years of pipeline construction and operation.
Here are some of the conditions that make our pipelines so safe: more rigorous pipe and coating manufacturing specifications; higher worker qualifications and standards; industry-leading standards for pipeline monitoring and leak detection; and more stringent repair criteria, to name a few.
This 485-mile long project has marked an important step in America’s goal of energy independence and security, and has provided a boost to the economy, creating over 4,000 jobs during the construction phase.