Canadian pipeline transport company Enbridge has announced plans to build a new C$1bn ($973m) pipeline to carry 200,000 barrels of diluents per day.
The proposed Norlite line will carry the diluents through Alberta from Edmonton to oil sands operators near Fort McMurray. It will have a capacity for expansion up to 240,000 barrels per day, and is expected to be operational by the second quarter of 2017.
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Canadian midstream operator Keyera has the option to participate in Norlite with a 30% working interest.
Enbridge has further plans to invest C$700m ($677m) to expand its Southern Lights pipeline from 95,000 to 275,000 barrels per day. The new line will carry diluent from Chicago to Edmonton.
According to the Canadian Association of Petroleum Producers, in 2012, Alberta produced about 1.8 million barrels of crude from oil sands per day.
By 2015 oil output is expected to rise to 2.3 million barrels per day, and by 2013, it could rise to 5.2 million barrels per day.
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By GlobalDataDiluent is used to thin heavy crude and allow it to flow through pipelines. Its addition enables the diluted fluid to meet pipeline specifications in order for it to be efficiently transported. Easing the restricted movement of viscous fluids in turn decreases the viscosity of the fluids, thereby decreasing the pumping/transportation costs.
Image: Enbridge’s proposed $973m pipeline will carry 200,000 barrels of diluents per day. Photo: courtesy of Kyle1278.
