TransCanada to acquire remaining control of ConocoPhillips' Keystone pipeline for $750 million

18 June 2009

TransCanada Corp., a leader in the field of energy infrastructure in North America is set to gain full control of the Keystone pipeline system by acquiring oil major ConocoPhillips' remaining interest in the project for $550 million and assumption of $200 million of short-term debt, the company announced on Tuesday.

TransCanada would also take the responsibility of ConocoPhillips' share of capital investment for the project resulting in an incremental commitment of around $1.7 billion through the end of 2012.

The deal is expected to be closed in the third quarter, subject to regulatory approvals.

Subsidiaries of TransCanada and ConocoPhillips which are partners for the project currently hold around 80 per cent and 20 per cent stakes, respectively, in Keystone.

TransCanada president and CEO Hal Kvisle said: ''This acquisition represents a unique opportunity for TransCanada to become the exclusive owner of an important oil transmission system that will play a vital role in transporting a growing supply of Canadian crude oil to the largest refining markets in the United States for decades to come.''