Explorer Plans Diluent Pipeline Extension

November 2011, Vol. 238 No. 11

Explorer Pipeline Company plans to build a 24-inch diluent pipeline extension from its existing Peotone Station, which is located on its 24-inch mainline between Wood River, IL and Hammond, IN, in order to allow shippers to transport diluent directly from Explorer to the Enbridge Southern Lights pipeline origin at Manhattan, IL.

From Manhattan, the diluent delivered by Explorer will be transported via Southern Lights into Western Canada.

Explorer is willing to construct the extension if, in the open season process, it receives sufficient support from shippers willing to sign long-term pipeline Transportation Service Agreements. The TSA will provide shipping discounts intending to be competitively advantaged to other alternatives. The open season includes two phases: The Phase 1 Non-Binding Open Season, which offered prospective shippers an opportunity to provide feedback and express their preferences until Nov. 9 and Phase 2, the Binding Open Season.

Construction of the extension is expected to begin in early 2012 and start-up is expected by mid 2014.