Inter Pipeline will spend $2.6 billion to transport bitumen to oil sands projects

Petroleum transportation and storage company Inter Pipeline Fund of Calgary has finalized agreements with the FCCL Partnership to  provide transportation of bitumen blend and diluent to three major oil sands projects in Alberta.  The FCCL Partnership is a business venture formed between Cenovus Energy and ConocoPhillips.

bitumen-oil-sands-Calgary-pipeline-transport-EDIWeekly
Inter Pipeline says it shipped 30 per cent of crude oil and 40 per cent of oil sands volume in Canada in 2012. The new contract with FCCL will significantly increase the company’s oil sands gathering business.

The plans call for Inter Pipeline to provide 500,000 barrels per day of bitumen and 350,000 barrels per day of diluent, through newly constructed pipeline. The 840 kilometres of new pipeline, and seven new pump stations, will serve existing projects at Foster Creek and Cristina Lake in Alberta, and the still-in-development Narrows Lake project. The diluent-delivery portion of the project is estimated to become operational in mid-2014; the bitumen delivery will become operational in 2015.

The projects will require an investment of $2.6 billion by Inter Pipeline and will “expand and strengthen” the company’s oil sands gathering business, according to David Fesyk, the president and CEO. The initial term of the contracts, which will provide Inter Pipeline with fixed annual payments, is for twenty years.

Did you miss this?

Other Popular Stories

  • 100,000 watt laser firing 10,000 pulses per second would "deorbit" tons of dangerous space debris
  • Researchers studied successful manufacturers for lessons for the future
  • Canadian company to provide modular housing for refugees in Sweden
  • Next Hydrogen Clean Energy Production Seeks US Partners — Could Set Precedent for Future Energy Relations
  • Greater transparency, accountability called for in new homes warranty plan for Ontario
  • News of extra jobs tempered by caution in Ontario auto sector
  • Bombardier Challenger 350 set to fly with NetJets
  • Overseas growth in future for Canada's air transportation industry
  • English-French partners show all-electric aircraft at Paris Air Show
  • Toronto Hydro reports on sustainability, social responsibility
  • Ontario to lose Toyota Corolla production but gain . . . ?
  • New Boeing 737 Max 8 crash mystery. Why did Lion Air flight 610 crash, killing 189 people, only 13 minutes after take-off?
  • Siemens Canada announces order for 270-MW wind project in Ontario
  • TransCanada confident Energy East pipeline will be built
  • Petronas deal could get LNG moving in Canada
  • Manufacturing down in February in both Canada and US
  • Government pledges continued support as National Mining Week begins
  • Industry-academic R&D cooperation to boost Ontario's aerospace sector
  • Europe trying to break China's monopoly for "rare-earth elements" and reduce dependence for other minerals
  • World's largest twin engine Airbus A350-1000 passes extreme weather tests for hot weather above 40 degrees celsius
Scroll to Top