Two major Canadian pipeline companies have signed a memorandum of understanding to join a group that plans to lay a $2.5 billion (U.S.) crude oil pipeline in Colombia.
TransCanada PipeLines Ltd., Calgary, and IPL Energy Inc., Edmonton, are seeking a combined 35-40% interest in the project. The companies plan to jointly operate the line, some of which exists.
The proposed route runs from the fields to Covenas on the Caribbean coast. Covenas storage and loading facilities are to be upgraded.
Phased construction of the 490 mile system will use existing facilities and rights-of-way as much as possible, expanding those facilities as oil flow rises in Cusiana and Cupiagua fields.
Phase 1, currently under way, is to be in service this year, with capacity rising to 150,000-185,000 b/d in 1995. Full development in 1997 will lift capacity to about 500,000 b/d.
Other members of the group are Colombia's state owned Empresa Colombiana de Petroleos, BP Exploration Co. (Colombia) Ltd., Total Exploratie en Produktie Mij. BV, and Triton Colombia Inc.
TransCanada operates Canada's main line natural gas system to domestic and U.S. export markets, and IPL operates Canada's major crude oil domestic and export pipeline system.
TransCanada is expanding its operations in the U.S. and participating in a feasibility study for a $400 million gas pipeline project off Viet Nam. It also is involved in a $3.2 billion pipeline project in the Gulf of Oman.
IPL is the sole owner of Interprovincial Pipe Line Inc. and 85% owner of Consumers' Gas Co. Ltd., Toronto. Interprovincial transports crude oil and liquids, while Consumers' distributes gas in south central and eastern Ontario and northern New York state.
