Canada's oil pipelines strained, NEB says

By OGJ editors

HOUSTON, Apr. 11 -- Canada's oil pipeline infrastructure is being strained to the limit, said the National Energy Board in its 2004 annual report.

As a result, plans are being made to expand and to construct new pipelines to accommodate growing oil sands production, it said.

The report further noted that applications for natural gas pipelines to deliver production from new sources continue to be filed in spite of some spare capacity on existing gas transportation infrastructure.

In October, the Board received five applications from Imperial Oil Resources Ventures Ltd. and other applicants for the construction and operation of the Mackenzie Gas Project in northern Canada.

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