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Inter Pipeline to start work on $100 million pipeline connection in Canada

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Canada-based Inter Pipeline has received commercial support for the construction of a $100 million (€89 million) pipeline connection between its Bow River and Central Alberta pipeline systems.

The Viking Connector pipeline will connect various grades of light crude oil from the Viking and Mannville formations in east-central Alberta to the Edmonton market hub.

"The Viking Connector enables us to cost effectively leverage our extensive regional pipeline network and provide customers with superior market access," said Christian Bayle, president and CEO of Inter Pipeline. "Producers in the Alberta Viking and surrounding plays are currently limited to pipeline services to the Hardisty hub or costly trucking alternatives. This connection will provide economical access to the Edmonton market hub which historically has been a premium market for Alberta light oil products, a clear benefit for producers."

The investment is the second phase of a development programme for the Central Alberta pipeline system. This phases includes the construction of 75km of 8-inch diameter pipeline connecting Inter Pipeline’s Throne Station on the Bow River pipeline system to the Central Alberta pipeline system in the Stettler area.

The company will also carry out upgrades on the Throne Station, including reconfiguring existing tank storage and expanding truck offloading capacity. Construction is due to begin immediately and should be completed in the first half of 2020.

When complete, the Viking Connector will have a throughout capacity of 10,000-15,000 barrels per day of crude oil. Around a third of forecast shipments are already secured for a 10-year term, according to Inter Pipeline, with additional term transportation agreements under negotiation.