CANADIAN LINE MOVES TOWARD GAS SERVICE

May 18, 1992
Interprovincial Pipe Line Ltd., Edmonton, has received court approval to restructure its operations to transport Canadian natural gas as well as crude oil. An Edmonton court agreed to allow Interprovincial to apply under Canada's Business Corporations Act for the restructuring. Interprovincial operates the crude oil pipeline from Edmonton to markets in eastern Canada and the U. S.

Interprovincial Pipe Line Ltd., Edmonton, has received court approval to restructure its operations to transport Canadian natural gas as well as crude oil.

An Edmonton court agreed to allow Interprovincial to apply under Canada's Business Corporations Act for the restructuring. Interprovincial operates the crude oil pipeline from Edmonton to markets in eastern Canada and the U. S.

The company plans to convert part of its mothballed 516 mile crude line between Sarnia, Ont., and Montreal to ship gas. The Sarnia-Toronto section of the line is to become Intercoastal Pipe Line with capacity of as much as 400 MMcfd in operation by late 1994 (see map, OGJ, Aug. 19, 1991, p. 25). Gas from western Canada will be delivered to the new link via Trans-Canada PipeLines Ltd.'s system from Alberta.

The section of the mothballed line between Montreal and Toronto will be used to ship as much as 290,000 b/d of imported crude to Toronto and via a smaller line to Sarnia, Ont., refineries in 1994.

The company also plans to lay a new crude line, the St. Lawrence Pipe Line, from an Ultramar Ltd. refinery at Quebec City to a products terminal in Montreal. The $110 million line is to be in operation by 1994.

The projects are subject to regulatory approvals.

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