Energy Transfer Partners, the energy giant that has been buying up and building pipelines and roads across Alberta, announced Monday that it is buying up the bulk of the land for the first phase of a $1.6 billion pipeline that would bring Canadian crude oil to Texas and the Gulf Coast.
The company is also buying up land in the western Gulf states and is building a pipeline from Louisiana to the Gulf of Mexico.
Energy Transfer has acquired about 8 million acres in the West and Alberta.
It’s one of the biggest oil sands purchases in Canadian history.
The first phase, called Keystone XL, is expected to begin moving crude oil from Canada to refineries in the U.S. in 2020 and be completed by 2022.
The pipeline will run from Hardisty, Alta., to Port Arthur, Texas.
A second phase, Keystone XL-2, would take Canadian oil to refiners in Texas and other Gulf Coast states, and would eventually run from Port Arthur to a port in B.C. Canada’s Natural Resources Minister Joe Oliver announced the new deals Monday at a news conference in Ottawa.
The Keystone XL project will be built in the same way as the existing Keystone XL pipeline, Oliver said.
“It’s a one-time transaction that will be completed over the long term, but we have to take a long, hard look at this project,” he said.
The $1 billion project would link Canada’s oilsands fields in Alberta with refineries and terminals in Texas, Texas, Louisiana and New Brunswick.
Keystone XL has the potential to deliver more than 700,000 barrels of oil a day from Canada’s oil sands to the U