Canadian export crude pipeline capacity to rise

Gary Park, Petroleum News Calgary correspondent

Confidence in a growing U.S. demand for Western Canadian crude has encouraged Terasen Pipelines to set in motion plans for expanding the Express Pipeline from Alberta to Casper, Wyo.

Terasen, formerly BC Gas, is targeting an increase to 213,000 barrels per day in early 2005 from 172,000 bpd, and ultimately to 280,000 bpd over an unspecified period.

The Express system, acquired from EnCana for C$1.175 billion last November, includes the 785-mile, 24-inch Express Pipeline from Alberta’s oil transportation hub at Hardisty and the 932-mile, 2-inch Platte Pipeline from Casper to Wood River, Ill., with capacity of 150,000 bpd and serving refineries in Colorado, Kansas and Illinois.

Express, which has traditionally operated under capacity, handles a variety of light, medium and heavy crude from Western Canada, shipping to markets in Montana, Wyoming, Utah and Colorado.

A spokesman for Terasen said both expansion phases, if supported by users, will be achieved through the addition of new pump stations. No cost estimates have been offered.