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These are no pipedreams Enbridge reaches shipping deals for new oil sands pipeline; one of four companies with projects in the works By Gary Park Petroleum News Canadian Contributing Writer
With the floodgates starting to open on new oil sands production, pipeline companies are pulling out the stops to meet transportation demand.
Enbridge, Terasen, Pembina Pipeline and Access Pipeline all have shippers lined up for the next round of projects along the 340-mile corridor from Fort McMurray to the Edmonton refinery hub.
Enbridge announced Sept. 9 that it will proceed with the first phase of its Waupisoo pipeline, targeting start up in mid-2008 at 350,000 barrels per day, serving four anchor tenants — ConocoPhillips Canada, Petro-Canada, Suncor Energy and Total E&P Canada.
The C$400 million, 30-inch diameter line is being designed to expand to 600,000 bpd if demand warrants.
Chief Executive Officer Patrick Daniel described Waupisoo as a “key element of our oil sands regional infrastructure development program,” offering “ample low-cost expansion.”
Talks are also under way with potential shippers to build a parallel C$200 million return line to carry condensate to the oil sands region to blend with bitumen and improve pipeline flow. Combined takeaway of 1.2 million bpd The addition of Waupisoo to its existing 570,000 bpd Athabasca pipeline could give Enbridge takeaway capacity from the oil sands of 1.2 million barrels per day and establish the first legs of its ambitious plans to send oil sands production to the Gulf Coast, California and Asia.
It has various interests in a bundle of projects within the United States that could carry more than 900,000 bpd to the Midwest and beyond.
Also pending are decisions on its Gateway project, planned to ship 400,000 bpd initially to a deepwater port on the northern British Columbia coast. Of those volumes up to 25 percent could be destined for California and the rest for Asia, provided PetroChina can aggregate 200,000 bpd to become the anchor tenant.
An Enbridge spokesman told Petroleum News that regulatory applications will be filed some time in 2006 provided an open season later this year leads to commercial contracts and negotiations are successfully concluded with local governments and aboriginal communities in British Columbia.
Like Waupisoo, Gateway could also have a parallel diluent pipeline to carry 150,000-265,000 bpd of imported condensate to the oil sands. Other projects The other pipeline projects involve:
• Terasen in August started engineering, environmental and consultation activities related to an C$800 million expansion of its Corridor diluted bitumen pipeline from Shell Canada’s Athabasca operation. The plan is to almost double capacity to 500,000 bpd in 2009. The Vancouver-based company has a goal of moving 1.5 million bpd, either by expanding its Trans Mountain system or building a new 625,000 bpd pipeline to a tanker facility at either Prince Rupert or Kitimat.
• Access Pipeline, a joint venture by Devon Canada and MEG Energy (with China National Offshore Oil Corp. as a 16.69 percent partner), is close to proceeding with a C$340 million diluted bitumen system offering up to 315,000 bpd, coming on stream in late 2006.
• Pembina Pipeline Income Fund is scheduled to start construction early in 2006 on a C$290 million pipeline to transport synthetic crude from Canadian Natural Resources’ Horizon project, aiming for start-up in mid-2008 to coincide with Horizon’s debut and building to 250,000 bpd.
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