Shippers sign 20-year deals for expanded oil line from Alberta to B.C.
(Calgary Herald; June 29) -- Kinder Morgan Energy Partners has named nine contracted shippers in a federal tariff application for its $4.2 billion Trans Mountain pipeline expansion, including oil producers already signed on to the competing Enbridge Northern Gateway project. Kinder Morgan identified its customers as oilsands producers BP, Canadian Oil Sands Ltd., Devon Energy, Cenovus Energy, Husky Energy, Statoil, Imperial Oil, Nexen and refiner Tesoro.
The companies inked 20-year contracts to flow 508,000 barrels per day on the proposed expansion to twin Kinder Morgan's existing line from Edmonton, Alberta, to Burnaby, B.C., Kinder Morgan said June 29. If approved, the project will more than double the line's capacity to 750,000 barrels per day from 300,000 barrels, dramatically increasing the volume of crude moving offshore in tankers. Approximately 80 percent of the committed volumes will be delivered to Kinder's Westridge terminal in Burnaby, B.C.
Ian Anderson, president of Kinder Morgan Canada, said the project will encounter similar challenges as the rival Northern Gateway pipeline. Aboriginal and environmental groups oppose both pipelines on concerns about spills on land and water, as well as increased ocean tanker traffic out of the region. "The outcome for the pipelines is very, very difficult to predict," said Steven Paget, analyst with FirstEnergy Capital Corp. "The opposition to both is strong."