The Nipisi Pipeline, designed to initially transport 100,000 barrels per day (bbls/d) of diluted heavy oil, is proposed to originate north of Slave Lake and run south to Judy Creek. From there, it would connect to an existing pipeline system that delivers products to the Edmonton area.
The Mitsue Pipeline is being designed to transport approximately 20,000bbls/d of condensate (a light hydrocarbon used to dilute the heavy oil) from Whitecourt, Alberta to producers operating north of Slave Lake.
Both projects, which Pembina estimates to cost a combined total of $440m, are scheduled to be placed into service in mid-2011.
Pembina has executed long-term transportation services agreements which will govern operations on the Nipisi and Mitsue Pipelines once they have been completed. Founding customers, Canadian Natural Resources and Cenovus Energy have, subject to certain conditions, contracted 80% of the 100,000bbls/d capacity on the Nipisi Pipeline and 50% of the 20,000bbls/d capacity on the Mitsue Pipeline.
Project construction is expected to proceed immediately. Piping fabrication for the pump stations will commence later in July and the pump station construction is expected to begin in August. Right-of-way clearing is anticipated to begin in September in preparation for pipeline construction which is planned to start in early December.
