Canada-based Inter Pipeline Ltd. announced it’s received sufficient shipper support for construction of a $100 million pipeline connection between its Bow River and Central Alberta pipeline systems in western Canada, Kallanish Energy reports.
The new line, known as the Viking Connector, will link various grades of light crude oil from the Viking and Mannville formations in east-central Alberta Province to the Edmonton market hub.
“The Viking Connector enables us to cost effectively leverage our extensive regional pipeline network and provide customers with superior market access,” said Christian Bayle, president and CEO of Inter Pipeline.
“Producers in the Alberta Viking and surrounding plays are currently limited to pipeline services to the Hardisty hub or costly trucking alternatives,” according to Bayle. “This connection will provide economical access to the Edmonton market hub which historically has been a premium market for Alberta light oil products, a clear benefit for producers.”
This $100 million investment is the second phase of a multi-phased development program for the Central Alberta pipeline system. This phase includes the construction of 45.6 miles of 8-inch pipeline that will connect Inter Pipeline’s Throne Station on the Bow River pipeline system to the Central Alberta pipeline system in the Stettler, Alberta, area.
In addition, Inter Pipeline will complete upgrades to the Throne Station, which includes reconfiguring existing tank storage and expanding truck offloading capacity. Construction will begin immediately and is expected to be completed in the first half of 2020.
When completed, Inter Pipeline forecasts throughput volume of 10,000 to 15,000 barrels per day (Bpd) on the Viking Connector, with roughly one-third of forecast shipments currently secured for a 10-year term.
Phase one of the Central Alberta development program, which began in late 2017, includes the conversion of the pipeline system to multi-product batch operation, and construction of additional truck offloading and tank storage capacity at the Stettler Station.
Batch operations began in mid-2018 and an additional 10,000 Bpd of truck unloading capacity is expected to enter service this fall. Two new 130,000-barrel storage tanks, the final component of phase one, are expected to be completed by the spring of 2020.
This post appeared first on Kallanish Energy News.