TransCanada is planning to take over the U.S 3 party gas pipeline operator.
From the past two weeks, I have been reading this news in many website’s article about that the TransCanada is going to take over the U.S. gas pipeline i.e. Columbia pipeline. So suddenly this news attracts me and I wanted to go deep down about what exactly about this deal and how does it make any difference in supply chain industries especially in oil supply chain industries in up north side of Canada. So when I have read lot of articles I have got to know about that this deal is not final yet but if it will happen it’s going to be $10 billion deal between both companies. (News, 2016)
So let’s take a look at the both companies and where they are currently standing …show more content…
Initially they are going to spend a lot of capital as an investment to cover up the north western part of Canada (British Columbia) whereas, Columbia pipeline has a good setup in the area of Pennsylvania and the northeastern part of U.S. and if both company wants to reach the maximum areas of the countries they should utilize the each capital to their pipeline network though TransCanada is wailing to provide the help to Columbia pipeline …show more content…
TransCanada also utilize the storage facilities of Columbia Pipeline network so it might beneficial for the suppliers so they can easily supply tons of barrels of oil and gas in a day with new pipeline capacity to accommodate the need of oil in northeastern part Canada.
If you take my opinion about this deal which may happen in near future so to be honest I think this deal is the alternative of Keystone XL project which was rejected by U.S federal two years back and if this deal will happen it might create a lot of buzz in the oil industries especially in supply chain industries because from the past 1 year TransCanada is really trying hard to expand the network to lower down the price of crude oil or oil shale and wanted to lot transportation of oil shale from U.S. to Calgary and improve the oil supply chain industries. TransCanada has to invest lot of capital initially but after that this project will be the most cost effective project for them to transport oil shale from the basins of Calgary and refine those oil shale in U.S. Once they will be expertise in this operation so it will be beneficial for customers because they are the end user of