Christopher E. Smith
OGJ Pipeline Editor
HOUSTON, June 23 -- Enbridge Inc. announced an agreement with Imperial Oil Resources Ventures Ltd. and ExxonMobil Canada Properties to transport blended bitumen from the Kearl project in the Athabasca oil sands region about 70 km northeast of Fort McMurray, Alta., to the Edmonton area.
Imperial announced last month that it would proceed with the first phase of the $8 billion (Can.) Kearl oil sands project, planning to develop it in three phases with production from the first phase beginning in late 2012 at an average 110,000 b/d of bitumen. It expects peak production of about 300,000 b/d of bitumen once all three phases are complete (OGJ Online, May 29, 2009).
The agreement comes on the heels of a report earlier this month from Alberta’s Energy Resources Conservation Board lowering forecast bitumen production through 2018, while at the same time increasing the number of townships in the Athabasca region in particular suitable for mining (OGJ Online, June 22, 2009).
Patrick D. Daniel, Enbridge president and chief executive officer, said the estimated cost of the pipelines and related facilities would depend on finalization of project scope, detailed engineering, and regulatory approvals.
A pipeline from Kearl to near Edmonton would likely be more the 500 km long.
Contact Christopher E. Smith at [email protected].