Proposal for $ 400 mm pipeline for heavy oil in north-eastern Alberta

Jul 14, 1997 02:00 AM

June 23, 1997 Alberta Energy Company and Husky Oil have made a proposal to jointly construct the Lakeland Pipeline system to serve north-eastern Alberta crude oil producers. The combination of assets and oil transportation capabilities of both companies will lead to a cost effective system designed to move the increasing volumes of production from the region. Applications have been filed with the Alberta Energy and Utilities Board seeking approval to construct and operate the proposed 552 km (343 ml) $ 400 mm pipeline.
The Lakeland Pipeline will have an initial shipping capacity of 150,000 bpd. It will connect the oil sands and heavy oil regions of north-eastern Alberta with the Cold Lake Pipeline supplying the Edmonton region, the Husky Pipeline serving the Bi-Provincial Upgrader and the Husky Refinery at Lloydminster and the major pipeline hub at Hardisty. The Hardisty hub is the shipping point for the recently commissioned Express Pipeline, moving oil to markets in the Rocky Mountain States and U.S. Midwest refining centres. The pipeline will also link to the Interprovincial Pipe Line System for shipments to Eastern Canada and the U.S. Midwest. Subject to receiving regulatory approvals, construction will commence in September, 1997.
The Lakeland Pipeline system will incorporate a 24-inch (609 mm) line to deliver crude oil from Fort McMurray to Hardisty. Diluent, for bitumen producers, will be sourced from the AEC operated LaCorey terminal and storage facility and from the Husky Pipeline System.

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