Canadian crude oil pipeline company South Bow said on Friday it is beginning efforts to obtain required permits across the U.S. route of its Prairie Connector project.
* The Alberta-to-Wyoming pipeline would use portions of pipe already installed in Canada as part of the cancelled Keystone XL project.
* South Bow said on a conference call it is working to secure its supply chain, contracting and procurement strategy, as well as working on a cost estimate for the project.
* South Bow is currently evaluating whether enough commercial support exists for the project, which could increase Canada’s crude exports to the United States by more than 12%, to go ahead. The company is expected to announce later this spring whether it has achieved enough commitments from oil shippers.
* South Bow is forecasting Canadian oil sands production to grow by about 1 million bpd within the next five to seven years, leading to demand for additional export pipeline capacity out of the country.
* But South Bow CEO Bevin Wirzba said the company will not expose its shareholders to any risks they aren’t willing to bear, and has much to consider before deciding to go ahead with the project.
(Reporting by Amanda Stephenson in Calgary; Editing by Kirsten Donovan)