Terasen, Pembina study diluent pipeline

Terasen Pipelines Inc. and Pembina Pipeline Corp. have formed a partnership to study feasibility of a pipeline system between Kitimat, BC, and Edmonston, Alta., that would carry 100,000 b/d of imported condensate for use as diluent in the transportation of heavy oil.

Oct. 24, 2005

By OGJ editors
HOUSTON, Oct. 24 -- Terasen Pipelines Inc. and Pembina Pipeline Corp. have formed a partnership to study feasibility of a pipeline system between Kitimat, BC, and Edmonston, Alta., that would carry 100,000 b/d of imported condensate for use as diluent in the transportation of heavy oil.

As proposed, the $1 billion (Can.) pipeline would make extensive use of existing infrastructure and could be ready for service by late 2008. Preliminary engineering and design of the Spirit Pipeline has been under way for several months. The partnership is gauging shipper interest.

Earlier this year, Kinder Morgan Inc., Houston, said it is acquiring Terasen for $5.6 billion (OGJ Online, Aug. 2, 2005).