TransCanada has entered into binding agreements with Phoenix to develop the Grand Rapids Pipeline project in Northern Alberta. TransCanada and Phoenix will each own 50% of the proposed $3bn pipeline project that includes both a crude oil and a diluent line to transport volumes approximately 500 kilometres between the producing area northwest of Fort McMurray and the Edmonton/Heartland region. The Grand Rapids Pipeline system is expected to be in-service by early 2017, subject to regulatory approvals, with capital spent between 2014 and 2017. The system will have the capacity to move up to 900,000 bbl/d of crude oil and 330,000 bbl/d of diluent. The project will be constructed, owned and operated by the Grand Rapids Pipeline Limited Partnership, which is jointly owned by Phoenix and a wholly-owned subsidiary of TransCanada Corporation. TransCanada will operate the system and Phoenix has entered a long-term commitment to ship crude oil and diluent on it.
TransCanada expects to apply for regulatory approval for the project in 2013.