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TransCanada Corp. (TRP) wrapped up a successful open season Tuesday, having secured 155,000 barrels per day of additional transportation contracts for the extension and expansion of its proposed Keystone pipeline. The duration of the new contracts averages 16 years and brings Keystone's total firm contracts to 495,000 bpd, with an average duration of 18 years.

"While we previously believed in a successful Open Season and were already including the extension/expansion in our financial model for TransCanada, the announcement nevertheless remains a positive insofar as it removes substantial execution risk from a total of US$700m in growth capital," Desjardins analyst Daniel Steyn told clients, maintaining his "buy" rating and C$43 price target on the stock.

TransCanada will now move to the next phase of the project and begin expanding to the U.S. Gulf Coast, CEO Hal Kvisle said in a statement.

Plans to market capacity for this next expansion will continue throughout the balance of 2007.

TRP 1-yr chart:
trp july 07

Source: TransCanada Enjoys Successful Open Season