TransCanada Corp. has revealed its strongest hint so far that it has received enormous demand from producers who are eager to fill the Keystone XL pipeline, which has been delayed for long with oil. This leaves the ball squarely in Nebraska’s court. The company had earlier indicated that it was waiting for sufficient support from the oil producers and wrapped up on the open season it had given them to place their bids for the available space on the line.
On Thursday November 9,2017 Paul Miller, the head of liquids pipeline business at TransCanada held a conference call with Robert Kwan, an analyst with the Royal Bank of Canada. Robert stated that TransCanada Corp. are on the right track going by the number of submissions they had but there were several other considerations and conditions they required to work well. Paul Miller explained that Mr. Kwan was right in his comments and the company had taken steps in evaluating the various concerns raised by prospective shippers.
What is Remaining?
Bearing in mind that the issue of producer support has almost been exhausted, the focus will now turn to the regulators based in Nebraska to give the green light on whether the pipeline will proceed or not. Their decision will be communicated later in the month. It is highly likely that any ruling delivered will be countered with a lawsuit. However, if the green light is issued then TransCanada Corporation will start laying the pipe for the first-time ever in its decade-long quest. The pipeline is expected to bring in more crude oil from the oil sands in Canada to refineries at the U.S. Golf Coast.
As investors await the decision on Keystone with bated breath, the company is not sitting pretty. On November 9, 2017 the company released its results for the third quarter, which showed that it had met the estimates analysts set for it. It also revealed that it managed to place C$900 million Grand Rapids rudimentary pipeline and C$1 billion of Northern Courier diluents and bitumen pipeline into service. The company further delved into natural gas shipping under fresh fixed price and long term contracts on its mainline in Canada. TransCanada Corp. has also made a few changes in its plans due to various challenges as well as for diversification purposes.
Change of Name
It is not certain why the company is mulling over changing its name. However, speculations are rife that it could be due to its diversification plans outside its home country. No official comments have been released by the company.