A massive $7 billion pipeline will need to be replaced with one that has a greater capacity, more flexibility and cheaper costs, according to the head of the Canadian Association of Petroleum Producers.
Keystone XL is the most controversial and complex of Canada’s oil and gas pipelines.
It has been controversial for years, and was the subject of several protests and a U.S. court decision.
It is the largest and most expensive oil pipeline in the world.
A pipeline to carry Alberta’s oil to the Gulf Coast of the United States will need a new and larger structure, the Canadian Petroleum Institute said in a report Monday.
That would make it more resilient to weather, and would make the pipeline more efficient and cheaper to build.
Keyboard Shortcuts, The Facts & Figures, Keystone XL, Oil & Gas Sources: CBS News, CIPA, U.N. Framework Convention on Climate ChangeKeystone is part of a massive $2.7 trillion pipeline project that is expected to reach Canada’s Gulf Coast by the end of 2020.
The project will create the world’s largest oil sands project, and the country’s largest export terminal.
It will also supply the world with roughly 20 percent of the world economy’s supply of oil.COPINION: Keystone XL project has been plagued with delays for monthsKeystone will bring Alberta’s oilsands crude to market for export for at least the next decade, but it will require an upgraded and more efficient pipeline, according the report.
The new and improved pipeline would be able to transport more crude at less than half the cost of the old, but could also have a lower capacity, and a shorter life, the CIPAs report said.
It would also require more flexibility for the project and could cost more.
It is also likely that a new section of the pipeline would need to have a wider diameter to withstand the increased seismic pressure that would be generated during the pipeline’s construction, according Toonakar Sundaram, a senior analyst with CIPs Pipeline Industry Advisory Committee.
The report comes as the Trump administration is reviewing whether to approve the Keystone pipeline.
The U. S. State Department said last week that the pipeline is already subject to the countrys most stringent environmental regulations.
The CIPAC report comes just days after a report released by the Government Accountability Office found that the Obama administration had failed to fully address risks to the pipeline from earthquakes, leaks, and corrosion.