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ENERGY: ConocoPhillips buys 50% stake in Keystone oil pipeline
        (AlbertaIndex, January 24, Thursday) --- US energy giant ConocoPhillips said it has acquired a 50 per cent ownership interest in the proposed Keystone oil pipeline linking Hardisty in Alberta to the US Midwest markets.
        The US$5.2-billion project calls for existing pipeline networks in Canada to be converted from delivering natural gas to crude oil, as well as the construction of another 2,200 km of new pipelines and pump stations in the US.

“ConocoPhillips is pleased to sign this agreement with TransCanada and take an important step in providing another reliable source of transportation for Canadian crude oil to US refineries,” said Jim Mulva, chairman and chief executive officer of ConocoPhillips. “The Keystone pipeline will play a significant role in integrating ConocoPhillips’ upstream and downstream assets and ensure market access for growing Canadian production.”

“The partnership between ConocoPhillips, a global integrated oil and gas producer and refiner, and TransCanada, a leading North American energy infrastructure company, reflects the strategic benefits of two energy entities working together,” said Hal Kvisle, TransCanada president and CEO. “The partnership provides us with a platform for developing future crude oil pipeline opportunities.”

Affiliates of TransCanada Corporation will be responsible for constructing and operating the 3,456-km pipeline, which will be capable of delivering 590,000 barrels per day of crude oil from Hardisty, Alberta, to Wood River and Patoka Illinois and to Cushing, Oklahoma.

Initial deliveries to Patoka are expected to begin in late 2009. Keystone has secured firm long term contracts of 495,000 barrels per day with an average duration of 18 years.

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