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

  • Technology that could help save the earth: Carbon Capture and Storage
  • Q3 corporate profits falter on oil, financial sector
  • Canadian cleantech sector strong in research, innovation, but weak in commercialization
  • Netherlands company to test plastic road construction
  • First LNG-powered ferry to begin service in Quebec
  • Clean energy expected to surge as pv costs drop
  • Pharmaceuticals, medical supplies lead June exports to 8-year high
  • Oil prices, production in Canada not likely to reach former levels again: CIBC
  • Wind more economical than nuclear: offshore wind turbines in U.K. significantly less expensive per megawatt than planned nuclear
  • Google's self-driving cars revealed to media for first time
  • Aerospace industry trade war? $2 billion at stake as Canadian Foreign Affairs Minister reviews Boeing sole sourcing
  • Latest Update on KRACK (Key Reinstallation Attack): the flaw in WPA2 protocal for WIFI systems
  • Industries, designers not doing enough to recycle metals: UN
  • Samsung will invest $7 Billion for NAND flash-memory manufacturing in China
  • Recovery continues as NA car sales head for year 2000 levels
  • Waterloo researchers seek cheaper fuel cells for electric cars
  • Five Seasons Ventures Invests in European Food and AgriTech
  • Massive turnaround at Irving refinery a boost for local economy
  • Volkswagen hit with $14.7 billion in fines, compensation over emissions scandal
  • Scientists Develop Plastic-Eating Enzyme
Scroll to Top