By OGJ editors
HOUSTON, Aug. 9 -- Terasen Pipelines Inc., Calgary, has initiated engineering, environmental, and consultation activities on its proposed expansion of the Corridor pipeline system in Alberta.
The move followed the announcement that Kinder Morgan Inc., Houston, planned to acquire Terasen Inc. in a $5.6 billion deal approved by both companies' boards (OGJ, Aug. 8, 2005, p. 26).
The Corridor proposal includes building a 42-in. diluted bitumen line and upgrading pump stations along the existing 306-mile pipeline from the Muskeg River Mine north of Fort McMurray to the Scotford upgrader near Edmonton.
The Corridor system is integral to the Athabasca Oil Sands Project (AOSP) and has carried dilbit�heavy crude oil and bitumen blended with condensate�diluent, and synthetic products since April 2003.
Corridor Pipeline's current dilbit capacity is 260,000 b/d. The upgraded pump stations and new pipeline will increase dilbit capacity to 500,000 b/d by 2009. The new capacity is designed to accommodate the first expansion of AOSP. Further capacity expansions are possible through the addition of intermediate pump stations.
Terasen Pipelines will file an application for the project with the Alberta Energy Utilities Board and Alberta Environment this fall. Pending regulatory approval and a decision by AOSP to proceed with the expansion, construction would begin in late 2006.
AOSP is a joint venture of Shell Canada Ltd. 60%, Chevron Canada Ltd. 20%, and Western Oil Sands LP 20%. Last September, Shell said it intended to expand AOSP's mining and upgrading facilities to 300,000 b/d by 2010, eventually achieving production in excess of 500,000 b/d.