Unocal Canada Ltd. and Canadian governments plan a $1 million program to test the feasibility of shipping a slurry of coal and condensate by pipeline.
Unocal will contribute $384,000, Alberta $333,000, and Ottawa $284,000.
The Alberta Research Council test site at Nisku, Alta., will produce the coal/condensate slurry for transportation tests in an experimental pipeline loop at the Saskatchewan Research Council site at Saskatoon, Sask.
Unocal said it may be possible to substitute coal for natural gas used for steam generation at enhanced oil recovery projects it operates near Cold Lake, Alta.
Unocal spokesman Glen Perry said if the coal can be shipped through existing pipelines it will be more economic than natural gas.
Perry estimated pipeline shipment could cut coal costs by $15-20 (Canadian)/metric ton and free natural gas for export.
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