Enbridge Inc., Calgary, has begun a long-range study to identify markets and pipeline needs for Alberta's rapidly expanding oil sands production.
Both Enbridge and BC Gas Inc., Vancouver, BC, also are studying shorter-range concepts for pipelines to move bitumen from the Athabasca region to planned refinery capacity in the Edmonton area.
Richard Bird, Enbridge group vice-president for transportation north, says the new study-with a 10-year planning horizon-is an expansion of a study done last year of oil market potential on the US West Coast, including California and Washington state, and incorporating Asia by tanker.
That study considered a 30-in. line from Alberta to the US West Coast, with a capacity of 400,000 b/d and an estimated cost of $2.5-3 billion (Can.). No route has been selected at this point.
Bird said shippers told Enbridge in a survey that they also want to look at the potential of traditional markets, such as the US Midwest, and a wide range of solutions for future marketing and pipeline needs.
Growing production
The Enbridge executive said total oil production from Western Canada will more than double in the next decade if all potential oil sands projects on the planning board go ahead (OGJ, June 10, 2002, p. 24). He said oil sands production will expand while conventional crude output will continue to decline.
Enbridge estimates that upgraded bitumen from oil sands surface mining operations could be almost 1 million b/d by 2010 and in situ recovery projects could increase their production to 0.7-1.2 million b/d in the same time period.
Bitumen production by Syncrude Canada Ltd. and Suncor Inc., the major mining operators, is currently close to 500,000 b/d.
Rival projects
Meanwhile, both Enbridge and BC Gas Inc. are studying rival projects to move bitumen from the Fort McMurray region to Edmonton.
BC Gas operates Trans Mountain Pipe Line, the major line moving crude oil and refined products to the West Coast. It is also building the Corridor Pipeline to move bitumen from the Athabasca oil sands to an Edmonton upgrader nearing completion by Shell Canada Ltd.
BC Gas plans to make a regulatory application in December for the $800 million, 321 mile Bison Pipeline. It would have an initial capacity of 100,000 b/d with an ultimate capacity of 450,000 b/d and an ultimate cost of up to $1 billion. The company says it is currently involved in joint engineering and technical studies with potential shippers True North Energy Ltd. and Petro-Canada Ltd. Both companies are currently involved in development of significant oil sands projects. BC Gas says the line would be heated, which would sharply reduce the volume of diluent needed to pipe bitumen.
Enbridge is also studying a heated line to move bitumen to Edmonton. The project, in the conceptual stage, would involve a 30-in. line with a capacity of 350,000 b/d and a cost of about $650 million. The company said it is looking at a time frame of 2005-07 for the line if it were to proceed. It has no immediate plans for a regulatory filing.
