The Alberta Energy Regulator (AER) has approved the majority of TransCanada’s applications to build and operate the $3bn Grand Rapids pipeline project.
The 460km oil and diluent pipeline system will be developed by a joint-venture (JV) of TransCanada and Brion Energy, formerly Phoenix Energy Holdings.
It will link the producing area north-west of Fort McMurray, Alberta, to terminals in the Edmonton/Heartland region.
TransCanada will operate the project with a 50% interest and the remaining stake will be held by Brion.
Brion has also entered into a long-term transportation service contract in support of Grand Rapids.
Construction on the pipeline is due to start in late 2014 and the project is planned to become operational in stages, with first crude oil transported by mid-2016.
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By GlobalDataThe entire system will have a capacity to move up to 900,000bpd of crude oil and 330,000bpd of diluent.
The companies will re-apply to the AER to construct and operate the Saleski terminal when required.
A new application will also be submitted for a revised route to cross the Athabasca River.
TransCanada president and CEO Russ Girling said: "The pipeline will be a critical piece of infrastructure to support the long-term growth plans and increased oil production in the Alberta oil sands and other oil-producing areas in northern Alberta.
"With permits already received for Northern Courier and now Grand Rapids, we have made significant progress this year in advancing our capital programme of Alberta regional liquids pipeline projects."
TransCanada said Grand Rapids is an important part of its capital programme, which includes $38bn of commercially secured projects anticipated to be complete by the end of 2020.
Of the total developments, $3.5bn of projects are planned to expand TransCanada’s liquids pipeline network in Alberta.
Image: A joint-venture (JV) of TransCanada and Brion Energy will develop the 460km oil and diluent pipeline system. Photo: courtesy of puttsk / FreeDigitalPhotos.net.
