EnCana seeks to sell Cold Lake, Express crude oil pipelines
EnCana Corp. said it is seeking prospective buyers for its interests in two crude oil pipelines.
By OGJ editors
HOUSTON, July 15 -- EnCana Corp. said it is seeking prospective buyers for its interests in two crude oil pipelines. The Calgary-based firm currently holds an indirect 70% interest in the Cold Lake Pipeline System and an indirect 100% interest in the Express Pipeline System. Both systems link Canada's oil sands production areas with the US Rocky Mountain and Midwest regions.
The Cold Lake system extends 297 miles and comprises two legs. The west leg, which extends between Cold Lake and Edmonton, Alta., consists of a 24-in., 235,000 b/d blend line and a 12-in. diluent (condensate) line. The south leg, meanwhile, delivers as much as 200,000 b/d of blended oil from Cold Lake to Hardisty, Alta. In Hardisty, the line connects with the Express system as well as another interprovincial system.
The Express system is made up of two systems—Express and Platte—which extend 1,717 miles. The 24-in. Express line spans 785 miles from Alberta's oil transportation hub at Hardisty to Casper, Wyo. The line can transport as much as 172,000 b/d of oil to Montana, Wyoming, and Utah. Using "comparatively modest investment in pumping stations," EnCana said, the Express system could be expanded to 280,000 b/d.
The 20-in. Platte system extends 932 miles from Casper to Wood River, Ill., and can carry as much as 150,000 b/d of oil. The system serves refineries in Colorado, Kansas, and Illinois.
The assets, effective Dec. 31, 2001, are worth a net value of $1.3 billion, EnCana said. The systems are held through Alberta Energy Co. Ltd., an indirect wholly owned subsidiary of EnCana.