Inter Pipeline Fund has entered into a binding agreement with Canexus Corp. to transport bitumen blend to Canexus unit train rail loading operations near Bruderheim, Alberta. Under the terms of the 10-year agreement, Inter Pipeline will provide Canexus with 100,000 bpd of firm capacity on a new pipeline lateral from the Cold Lake Pipeline system.
Inter Pipeline will construct an 8-mile, 24-inch pipeline lateral from the Cold Lake system to Inter Pipeline’s Polaris pumping station near Lamont, Alberta. Bitumen blend will then be transferred to a Canexus-owned pipeline for delivery to its Bruderheim rail loading facility. The new lateral will have a capacity of 320,000 bpd.
Construction of the new lateral and metering facility, expected to cost $50 million, will begin in August and should be in-service in mid-2014. Additionally, Canexus is embarking on a major expansion of its rail operations to enable loading of crude oil unit trains, which will access both the Canadian Pacific and Canadian National Railway systems.