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

  • Airbus Tests Self-Flying Taxi
  • "Fireworks" in Canada's economy as GDP rises 2.3 per cent in January
  • LNG Canada moves ahead with BC project as China and Russia sign huge gas deal
  • Scientists claim 30 per cent improvement in solar cell efficiency
  • Short list announced for Green Car of the Year
  • Honda hopes to catch up on Autonomous driving and electric vehicle technology — by 2025
  • Manufacturing industry showed strength in May: RBC
  • Wholesale trade saw healthy gains in 2014: Statistics Canada
  • Demand for 100K engineers over next ten years in Canada
  • New national aerospace consortium to foster leadership in technology
  • Building code change could help drain water heat recovery manufacturers
  • Construction industry will boom in Northern Ontario, GTA: report
  • Canada's west to lead growth of economy for 2017 at 3.3 per cent: Conference Board of Canada
  • Powering the Future through Protonic Ceramic Fuel Cells?
  • Manufacturers group says government policies reflect its input
  • Waterloo researchers seek cheaper fuel cells for electric cars
  • Electro Water Separation (EWS) or Electro Coagulation: Treatment system uses electricity to clean contaminated water
  • Oil supply rising even as demand growth falls; investment likely to be slashed further in 2017
  • Financial services fastest growing industry in Canada for exports: Conference Board of Canada
  • Saudi solar-powered desalination plant will be world's largest
Scroll to Top