Inter Pipeline Ltd. says that it has commercial support in place to proceed with a new $100-million crude oil pipeline connecting production in east-central Alberta to the Edmonton market hub.
The company says that construction will commence immediately on the new project, called the Viking Connector.
The 75-kilometre, eight-inch diameter pipeline will connect Inter Pipeline’s Throne Station on its Bow River pipeline system near Coronation to its Central Alberta pipeline system near Stettler.
The company says that as part of the project it will complete upgrades to Throne Station, including reconfiguring existing tank storage and expanding truck offloading capacity.
The new connection will provide economical access to the Edmonton market hub, which historically has been a premium market for Alberta light oil products, Inter Pipeline CEO Christian Bayle said in a statement.
“Producers in the Alberta Viking and surrounding plays are currently limited to pipeline services to the Hardisty hub or costly trucking alternatives,” he said.
When completed, Inter Pipeline forecasts throughput volume of 10,000 to 15,000 bbls/d on the Viking Connector, with approximately one third of forecast shipments currently secured for a 10-year term.
Additional term transportation agreements are under negotiation and contracted commitment levels may rise by the in-service date, the company said.
The Viking Connector is expected to be completed in the first half of 2020.