Access Pipeline Nears Construction Midpoint on New Diluted Bitumen Pipeline in Alberta

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Researched by Industrial Info Resources (Sugar Land, Texas). Access Pipeline, Incorporated (Calgary, Alberta), a joint venture of MEG Energy, Incorporated (Calgary, Alberta) and Devon Canada Corporation (Calgary, Alberta), the Canadian business unit of Devon Energy Corporation (NYSE:DVN) (Oklahoma City, Oklahoma) has mobilized construction crews and is currently fabricating modules for transport to the pipeline construction site. Site preparation began on the new pipeline in late 2005 and major construction activities began earlier in the first quarter of 2006.

Access Pipeline had awarded the engineering contract for the new pipeline to Sunstone Projects, Limited (Calgary, Alberta) in 2005 and later awarded the construction contract to three contractors including Horton CB&I (Calgary, Alberta). Construction on the $300 million pipeline is scheduled to be complete in August of 2006.

Once complete, the pipeline itself will be composed of a dual pipeline system consisting of 303 kilometers of 24” diameter bitumen pipeline and 310 kilometers of 16” diameter diluent return pipeline originating at MEG Energy’s Christina Lake Regional Project, which is located just south of Fort McMurray, Alberta and terminating at Redwater, Alberta. A further 49 kilometers of 24” diluted pipeline will connect the Redwater trim blend facility to Edmonton and the terminal pipeline markets located there. The system will be designed to transport 400,000 barrels per day (BBL/d) and Access Pipeline will source all of its diluent from the Redwater area and it will be stored at the trim blend facility, which will have approximately 500,000 barrels of storage capacity spread among three tanks. All of the upstream pumping and storage facilities will be located within the battery limits of the Jackfish and Christina Lake facilities. There will be a single stand alone pump station located eight miles east of Lac La Biche and a pump facility will be located at the Redwater trim blend facility.

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