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Pipe dreams: TransCanada plans a new pipeline from Alberta to Texas

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TransCanada plans new pipeline

TransCanada plans to build a new oil pipeline to Texas from Alberta with a capacity of 750,000 barrels per day, said chief executive Hal Kvisle.

The company will hold an open season in the next couple of months to gauge oil shipper support for the pipeline, Kvisle told reporters.

The line could be in service by 2012, three years after the first Keystone line is expected to be wrapped up said Reuters.

"The construction (of Keystone) would roll into construction of the other," said Kvisle.

The line would run from the Empress pipeline hub in southeastern Alberta to Port Arthur, Texas

The company has not released a cost estimate for the new line but Kvisle said the pricetag may be much higher than the Keystone line into service, since Keystone uses old natural-gas pipes for part of its route.

"It will be a shorter overall distance because it’s a more direct route, but a greater overall cost because we can't use existing pipe," Kvisle said.

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