Central Alberta Midstream, a venture of Chevron Corp. unit Chevron Resources Canada and BP unit Amoco Canada, began construction of a 70-km, 12-in. sour gas pipeline in northern Alberta.
The line will connect sour gas production in the south Wapiti area to Central's processing facilities in the Kaybob region. Specifically, the line will extend from the end of the Simonette pipeline to Central facilities near the Gold Creek plant operated by Rio Alto Exploration Ltd.
More dehydration and compression facilities are being built at Gold Creek to handle wet sour production. The pipeline should be complete in April.
A spokesman for Central Alberta Midstream said the company is continuing to evaluate pipeline opportunities west of its current facilities.