By OGJ editors
HOUSTON, July 15 -- Pembina Pipeline Corp. Calgary, completed its $400 million Horizon pipeline, which will provide 250,000 b/d of dedicated transportation capacity to Canadian Natural Resources Ltd.'s Horizon oil sands project. Work began in November 2006.
Construction involved laying 73 km of new pipeline following twinning in 2004 of the original Alberta Oilsands pipeline (AOSPL)—now called the Syncrude pipeline)—which the company acquired in late 2001. it expanded the AOSPL capacity to 389,000 b/d of dedicated synthetic crude oil transportation capacity to Syncrude Canada Ltd. The following year, Pembina completed the 136,000 b/d Cheecham lateral.
Pembina spent over $600 million to expand its service offering in the Athabasca oil sands region and now has 775,000 b/d of fully contracted synthetic crude oil transportation capacity in three distinct pipelines serving customers in this region.
The Horizon pipeline will be operated under terms of a 25-year extendible transportation agreement providing Pembina a fixed return on invested capital and full recovery of operating costs. Pembina expects the Horizon pipeline to contribute incremental net operating income of $45 million/year over the 25-year contract term, beginning Aug. 1.