TransCanada has formed a joint venture with Phoenix Energy Holdings to develop the $3bn Grand Rapids Pipeline project in Northern Alberta, Canada.
The project will be constructed, owned and operated by the Grand Rapids pipeline Limited Partnership.
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Each company will hold a 50% stake in the project which includes both a crude oil and a diluent line. It is expected to be in-service by early 2017.
The pipeline will transport volumes approximately 500km between the producing area north-west of Fort McMurray and the Edmonton / Heartland region.
The system will have the capacity to move up to 900,000 barrels per day of crude oil and 330,000 barrels per day of diluent
The system will be operated by TransCanada while Phoenix Energy Holdings has entered into a long-term commitment to ship crude oil and diluent using the pipeline.
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By GlobalDataTransCanada president and chief executive officer, Russ Girling, said, "We are pleased Phoenix is joining us on the Grand Rapids pipeline project to transport this growing, long-term supply of Canadian crude oil in a manner that respects the communities and environment where the pipeline will operate."
Phoenix Energy Holdings president and chief executive officer, Zhiming Li, said," This transportation solution will be important to Phoenix and other potential producers in this area to monetise their huge resources."
The final pipeline route will be determined with Aboriginal and stakeholder input. TransCanada expects to apply for regulatory approval for the project in 2013.
The commencement of the project is subject to regulatory approvals, with capital spent between 2014 and 2017.
TransCanada operates 24,200km of natural gas pipelines across Alberta and 3,500km of crude oil pipelines through the operation of the Keystone Pipeline.
Image: Trans Canada Tower in Calgary, Alberta. Photo: GNU.
