Keystone gets pricier

TransCanada costs soar by $1bn

TRANSCANADA will have to pump an extra $1bn into its Keystone pipeline network, including the proposed Keystone XL expansion, pushing the final cost to $13bn. It blames construction cost inflation and increasing turmoil within the US President Barack Obama’s administration for the 8% adjustment. But company executives do concede that two-thirds of the $1bn stems from fluctuations between the US and Canadian currencies. They also say 35-40% relates to the existing 0.5m barrels a day (b/d) Keystone link from Alberta’s oil sands to the trading hub at Cushing, Oklahoma, of which shippers will pick up 50%. If the contentious 0.591m b/d Keystone XL pipeline from Alberta, through Cushing to US Gulf