BISMARCK, N.D. — The Canadian company behind the long-delayed Keystone XL oil pipeline will seek U.S. government approval for another pipeline — this one going north.
Industry officials in North Dakota say the proposed Upland Pipeline could reduce reliance on the railroads to ship crude after recent concerns about safety.
TransCanada Corp.’s proposed $600 million Upland Pipeline would begin near the northwestern North Dakota oil hub of Williston and go north into Canada about 200 miles. At peak operation, it would transport up to 300,000 barrels of oil daily, connecting with other pipelines, including the Energy East pipeline across Canada.
TransCanada hopes to have the Upland Pipeline operating in 2018, pending approval from the U.S. State Department, North Dakota’s Public Service Commission and Canada’s National Energy Board. The company plans to submit an application to the State Department later this year.
TransCanada has been trying for years to get U.S. approval for the 1,179-mile Keystone XL, which would connect Canada’s tar sands to refineries on the U.S. Gulf Coast but has sparked environmental objections. Congress last week approved construction, but President Barack Obama has threatened to veto the measure.
North Dakota is producing about 1.2 million barrels of crude daily, 60 percent of which now is being hauled by rail.
