While oil prices have dropped below $50 per barrel, expanding market access continues to be a long-term need for Canadian oil and gas producers. Despite lower revenues — the current estimated cost of a barrel of oil in Canada is around $35 — oil product is still expected to grow in 2015.
“Canada has the opportunity to be the supplier of choice at home and in the global market and that’s why market access, by all means, in all directions, is so critically important to improve the health, wealth and quality of life of all Canadians, even with the current declines in prices and investment,” said CAPP president Tim McMillan.
Here is a list of some of the oil pipeline projects currently under construction or awaiting approval from the Canadian government:
Enbridge proposes to construct and operate a new 181-km, 36-in. pipeline to transport crude oil from the company’s existing Edmonton Terminal to its Hardisty Terminal. Construction began in May 2014. The project is expected to be in-service the first quarter of 2015.
TransCanada has a 4,500-km pipeline that will carry 1.1 million bpd of crude oil from Alberta and Saskatchewan to refineries in eastern Canada. The exact route will be determined after public and regulatory review. NEB will be accepting applications to participate in the joint panel review process until March 3, with the hearing expected shorty thereafter. Preliminary in-service dates for Montreal and Quebec City are set for mid-2017 and for Saint John in late 2018.
Enbridge’s Northern Gateway system would include two 1,177-km pipelines from Alberta to the British Columbian coastline, with associated storage tanks and terminals, at a cost of $5.5 billion. The NEB approved the project in June 2014, pending 209 conditions. Enbridge is currently addressing the board’s conditions before it can begin construction. The estimated in-service date of 2017.
For more than 60 years, Kinder Morgan’s Trans Mountain Pipeline system has been providing the only West Coast pipeline access for Canadian oil products. The pipeline system was most recently expanded in 2008 and now the company is proposing an expansion of its current 1,150-km pipeline between Strathcona County, Alberta (near Edmonton), and Burnaby, British Columbia. The proposed expansion would create a twinned pipeline that would increase the nominal capacity of the system from 300,000 bpd to 890,000 bpd. Kinder Morgan filed an application with the NEB on Dec. 16, 2013. Pending regulatory approval, construction of the new pipeline could begin as early as 2015 or 2016, with an in-service date in late 2017.
(Source: Trenchless Technology)