Keyera takes stake in Enbridge Athabasca diluent line

May 20, 2014
Keyera Corp. has agreed with Enbridge Pipelines (Athabasca) Inc. to participate in the Norlite Pipeline as a 30% nonoperating owner. The Norlite Pipeline will move diluent for producers from the Edmonton-Fort Saskatchewan area into the Athabasca oil sands region.

Keyera Corp. has agreed with Enbridge Pipelines (Athabasca) Inc. to participate in the Norlite Pipeline as a 30% nonoperating owner. The Norlite Pipeline will move diluent for producers from the Edmonton-Fort Saskatchewan area into the Athabasca oil sands region. The pipeline will initially run from Enbridge's Stonefell Terminal near Fort Saskatchewan northward to Suncor’s East Tank Farm, adjacent to Enbridge’s Athabasca Terminal. Along the route, Norlite will pass by both Enbridge’s Cheecham Terminal and the Keyera-Enbridge South Cheecham Rail and Truck Terminal.

Norlite will use 20-in. OD pipe to ship 280,000 b/d. Throughput commitments from Suncor Energy Inc. (SEI), Total E&P Canada Ltd., and Teck Resources Ltd. for the Fort Hills oil sands project and by Suncor Energy Oil Sands LP (SEOS) for its proprietary oil sands production will anchor the pipeline.

If Enbridge secures additional long-term commitments, Norlite could be increased to a 24-in. OD and could also include a lateral to Enbridge’s Norealis Terminal. Enbridge expects to finalize project scope later this year, at which time estimated cost will be determined. It expects the project to enter service second-quarter 2017.

The throughput commitments SEI, Total, Teck and SEOS made on the Norlite Pipeline include transportation on Keyera’s diluent system between Edmonton and Stonefell. Keyera’s diluent transportation system will deliver into the Norlite Pipeline.

Enbridge ships diluent 1,588 miles from the Chicago area to Edmonton on its Southern Lights Pipeline (OGJ Online, June 5, 2013).