Explorer Pipeline Holds Bindling Open Season For Diluent Pipeline

March 2012, Vol. 239 No. 3

Explorer Pipeline Company plans to construct 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.

The Diluent Pipeline Extension Project requires a significant capital investment from Explorer. Therefore, long-term throughput commitments are being sought from interested shippers in order to support the investment. The initial Non-Binding phase of the open season process was completed in the fourth quarter of 2011. Explorer is willing to construct this pipeline extension if, in this binding phase of the open season process, it receives sufficient support from shippers willing to sign long-term pipeline Throughput Agreements (TAs). The TA will provide volume incentive discounts intending to be competitively advantaged to other alternatives. The Binding Open Season ran from March 5-April 16.