Inter Pipeline Ltd has announced that it has received commercial support for the construction of a CAN100 million pipeline connection between its Bow River and Central Alberta pipeline systems. The new pipeline, called the Viking Connector, will link various grades of light crude oil from the Viking and Mannville formations in east-central Alberta to the Edmonton market hub in Canada.
“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 Chief Executive Officer 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. 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 CAN$100 million investment is the second phase of a multi-phased development programme for the Central Alberta pipeline system. This phase includes the construction of 75 km of 8 in. diameter pipeline that will connect Inter Pipeline's Throne Station on the Bow River pipeline system to the Central Alberta pipeline system in the Stettler 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 bpd on the Viking Connector, with approximately one-third of forecast shipments currently secured for a 10-year term. Additional term transportation agreements are under negotiation and contracted commitment levels may rise by the in-service date.
Phase one of the Central Alberta development programme, which commenced 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 in the fall of 2019. Two new 130 000 bbls storage tanks, the final component of phase one, are expected to be complete by the spring of 2020. Further phases may be required over the next several years to support additional production growth.
About Inter Pipeline Ltd
Inter Pipeline is a major petroleum transportation, natural gas liquids processing, and bulk liquid storage business based in Calgary, Alberta, Canada. Inter Pipeline owns and operates energy infrastructure assets in western Canada and Europe. Inter Pipeline is a member of the S&P/TSX 60 Index and its common shares trade on the Toronto Stock Exchange under the symbol IPL.
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