Alberta Energy Co. Ltd. and Trans- Canada PipeLines Ltd., both of Calgary, have declared an open season calling for shippers to book space on the 170,000 b/d line.
Alberta Energy and TransCanada plan to book 50,000 b/d of capacity on their line and are seeking a 120,000 b/d commitment from producers.
Express wants producers to make 5, 10, and 15-year shipping commitments. It said tariff on light crude from Hardistry, Alta., to Casper, Wyo., on a 15-year contract would be $1.10 (U.S.)/bbl.
Casper is a major crude oil transportation hub serving U.S. Rocky Mountain and Midwest refiners.
The line will be laid only if 100% of proposed capacity is booked. Target date for completion is October 1996.
Koch Oil Co., a major exporter of Canadian heavy crude, has said it is not convinced that Express is the best option for its needs. Koch ships crude on the Bow River and Cenex Pipeline systems through Montana.
The Express line was originally proposed 2 years ago but was shelved when producers supported an expansion of the IPL system.
The need
A draft environmental impact statement prepared by the U.S. Interior Department underscored the need for additional crude oil in the Rocky Mountains.Interior said Rocky Mountain oil production has dropped to the current 424,000 b/d from 628,000 b/d in 1985. By 2015, production is forecast to slide further to about 201,000 b/d. At that time, production in the region will have fallen almost 70% from the 1985 level.
Because this region has no alternative U.S. crude supplies available, Canadian crude oil via the Express Pipeline has the opportunity to satisfy the market, Interior said.
Demand for refined products in the Rockies is similar now -- 430,000 b/d -- to what it was in 1985 -- 432,000 b/d. Future demand will fluctuate but remain at about 420,000-430,000 b/d. By 2015, demand for refined petroleum is expected to be about 427,000 b/d.
"Thus," Interior said, "refineries in the Rocky Mountain region need to locate supplies of crude oil elsewhere if they are to meet the region's demand for refined petroleum."
Competition
The current $530 million Express proposal is competing with a proposed 120,000 b/d expansion by IPL Energy Inc., Calgary, of its crude oil pipeline to Chicago.Canada's National Energy Board has received applications from IPL's Interprovincial Pipe Line Inc., Edmonton, and Westspur Pipe Line Co. Inc., Regina, Sask., to boost deliveries of Canadian crude oil to the U.S. (OGJ, Aug. 28, p. 39).
Interprovincial's $86 million (Canadian) plan calls for the capacity expansion, along with construction of two additional storage tanks at the Hardisty, Alta., and Cromer, Man., terminals. Planned in-service date is Dec. 31, 1996.
Westspur plans to lay 21 miles of line from its Steelman, Sask., terminal to the U.S. border near North Portal, Sask., to connect with a new segment of line to be laid by Portal Pipe Line Co. Westspur's $5.25 million (Canadian) project, to include pump unit additions and modifications to equipment at the Steelman pump station, aims for start-up in third quarter 1996. Copyright 1995 Oil & Gas Journal. All Rights Reserved.
