TransCanada Corp. (TSX: T.TRP, Stock Forum) said that it has entered into binding agreements with Phoenix Energy Holdings Ltd. to develop the Grand Rapids Pipeline project in Northern Alberta.
The system will have the capacity to move up to 900,000 barrels per day of crude oil and 330,000 barrels per day of diluent.
According to the TransCanada press release, TransCanada and Phoenix will each own 50% of the proposed $3-billion pipeline project to transport crude oil and diluent approximately 500 kilometres between the producing area northwest of Fort McMurray and the Edmonton/Heartland region.
The Grand Rapids Pipeline system is expected to be in-service by early 2017, subject to regulatory approvals, with capital spent between 2014 and 2017.
The project will be constructed, owned and operated by the Grand Rapids Pipeline Ltd. Partnership, which is jointly owned by Phoenix and a wholly owned subsidiary of TransCanada Corp.
TransCanada is developing one of North America's largest oil delivery systems.
On Monday morning, TransCanada was trading at $44.40 a share. The company has a market cap of $31.3 billion, based on 704.9 million shared outstanding. The 52-week high and low was $46.24 and $39.25 respectively.