The Wall Street Journal-20080123-ConocoPhillips- Plans Are Set to Buy 50- Interest in Pipeline

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ConocoPhillips: Plans Are Set to Buy 50% Interest in Pipeline

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ConocoPhillips said it will pay an undisclosed sum to TransCanada Corp. to exercise an option to buy a 50% interest in the Keystone Oil Pipeline. A previously signed memorandum committed ConocoPhillips to ship crude oil on the pipeline and gave it the right to acquire as much as a 50% ownership interest. Affiliates of TransCanada will be responsible for building and operating the 2,148-mile Keystone Pipeline, which will be capable of delivering 590,000 barrels a day of crude oil from Hardisty, in Canada's province of Alberta, to U.S. markets at Wood River and Patoka, both in Illinois, and to Cushing, Okla. Initial deliveries to Patoka are expected to begin in late 2009.