TransCanada reached an agreement to become the sole owner of the Keystone Pipeline System through the acquisition of ConocoPhillips' remaining interest in the project for approximately $550m (plus the assumption of approximately $200m of short-term debt). The transaction is expected to close in third quarter 2009, subject to the receipt of certain regulatory approvals. The first phase of Keystone is currently under construction. It will extend 3,456 km from Alberta to U.S. Midwest markets. It will have an initial nominal capacity of 435,000 bbl/d and serve markets in Illinois. Commissioning of this segment is expected late 2009 with commercial operations to follow in early 2010. The line will subsequently be expanded to a nominal capacity of 590,000 bbl/d and extended to Oklahoma. Commissioning of the second segment is expected to commence in late 2010. When completed, Keystone will be one of the largest oil delivery systems in North America with the capacity to deliver 1.1 mbl/d. Keystone has secured long-term commitments for 910,000 bbl/d for an average term of approximately 18 years which represents approximately 83% of the commercial design of the system. In the future, Keystone could be economically expanded to 1.5 mbl/d in response to additional market demand. The total capital cost of Keystone is expected to be approximately $12bn. Approximately $2.7bn has been spent to date with the remaining $9.3bn to be invested by the end of 2012.