Enbridge has announced that it will go ahead with plans to extend the Woodland pipeline in Canada from Cheecham terminal to Edmonton terminal, connecting the refineries and export pipelines in the Edmonton area.
The project will serve the Imperial Oil and ExxonMobil Kearl oil sands project, and its recently announced expansion. Enbridge will contribute 50% of the costs, estimated to be $1.3bn.
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The 385km, 36in diameter extension is expected to hold an initial capacity of around 400,000 barrels per day (bpd), which can be expanded to 800,000 bpd, based on crude viscosity.
The project includes new pump stations at Roundhill station and Cheecham terminal.
A major part of the proposed route for the extension is a shared corridor with the Waupisoo Pipeline.
Enbridge liquids, pipelines and major projects president Stephen J Wuori said that the new pipeline is being constructed to assist production growth from the Kearl oil sands project.
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By GlobalData"Extension of the Woodland Pipeline will bring additional crude oil transportation capacity into the Edmonton area, enabling us to accommodate forecasted regional oil sands production growth from the Kearl project and other oil sands projects targeted for delivery into the Edmonton hub," Wuori added.
The company intends to bring the new pipeline into service in the third quarter of 2015. It received regulatory approval for the project from the Alberta Energy Regulator (AER) in August 2012.
