A pipeline to create a strategic outlet for oil sands produced NGLs is planned by Williams in Alberta, Canada.
As proposed, the pipeline will transport NGLs and olefins from its extraction plant in Fort McMurray to its Redwater processing facility.
Williams currently processes off-gas from Suncor Energy’s oil-sands facility in the Fort McMurray area, extracts the NGLs and olefins and transports them via the Suncor Oil Sands Pipe Line. The new 12-inch proposed pipeline will provide additional capacity for Suncor liquids, as well as NGLs from other oil-sands producers’ off-gas.
The proposed pipeline project is expected to cost $283 million, using cash previously received from Canadian and other international projects.
Construction on the 261-mile pipeline is expected to begin in 2010, with an anticipated in-service date of April 2012. The pipeline will have an initial capacity of 43,000 bpd of off-gas liquids, with the future capability to transport up to 125,000 bpd day by installing additional pump stations.
In support of the new pipeline, Suncor is dedicating approximately 106 MMcf/d of off-gas (which equals about 15,000 bpd of production) with the potential for additional volumes for processing at the Williams Fort McMurray and Redwater facilities through 2032.
“This new pipeline fits perfectly with Williams’ midstream strategy of providing reliable, large-scale infrastructure in growing basins and positions us extremely well for future business from other producers in the area,” said Alan Armstrong, president of Williams’ midstream business. “In addition, the pipeline will support the future removal of ethane from the oil-sands off-gas, which will further decrease greenhouse gas and sulfur dioxide emissions and provides a critical feedstock for Alberta chemical companies.”
The pipeline project requires approval from the Energy Resources Conservation Board and other Canadian regulatory agencies. In addition, Williams will continue to conduct on going public consultation with area communities and other stakeholders.