U.S. Approves Pipeline to Canada; Not That One, Though
An 80-mile-long chunk of the Vantage Pipeline system to carry ethane gas from North Dakota to Alberta has been approved by the U.S. State Department and the President. Ethane is used as a feedstock for making various plastics and other consumer products.
While this is not the 1,800-mile-long Keystone XL pipeline, supporters of the massive project proposed by TransCanada Corp. (NYSE: TRP) didn't let an opportunity pass to encourage the President and the State Department to get on with approving the Keystone XL. North Dakota Senator John Hoeven noted that it took just three years to approve the Vantage pipeline and that Keystone XL is still awaiting a decision after five years.
Hoeven also said that construction of the pipeline will inject $300 million into the U.S. and Canadian economies and expand the market for North Dakota natural gas. The pipeline will transport ethane gas produced by Hess Corp. (NYSE: HES) to a chemical plant in Canada owned by NOVA Chemicals.
One beneficial environmental side effect of the new pipeline will be a reduction in gas flaring.
Filed under: Energy (Business) Tagged: HES, TRP