Altex Energy Intends to Construct $5 Billion Crude Oil Pipeline Connecting Canadian Oil Sands Production to Southern U.S. Markets

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Researched by Industrial Info Resources (Sugar Land, Texas). Altex Energy Limited (Calgary, Alberta) is planning to construct, own and operate a new crude oil pipeline that will connect the crude consuming markets of the Midwest and southern U.S., with increasing crude oil production volumes resulting from the growth in Alberta’s oil sands patch. The proposed Altex Pipeline System will originate in the Fort McMurray, Alberta area and run a course of 2,200 to 2,300 miles in length before the pipeline terminates in the Port Arthur, Texas area. The pipeline will traverse the provinces of Alberta and Saskatchewan in Canada and the states of Montana, Nebraska, Kansas, Oklahoma, and Texas in the U.S. Approximately 1,529 miles of the total pipeline length will be located in the U.S.

The pipeline is still in the early commercial phase and the project scope is not yet complete. The pipeline will be either 30 or 36 inches in diameter and will have an initial crude oil throughput capacity of 250,000 to 350,000 at a minimum. To support the pipeline up to twenty new pump stations will be needed. Each new pump station will utilize electric drive units totaling between 14,000 and 15,000 horsepower per station and will have a three by 5,000 or 2 by 7,500 horsepower configuration.

Once Altex completes its commercial studies and holds its open season to gauge shipper interest then the scope of the $4 to $5 billion pipeline will become clear and Altex will file for its regulatory approvals. A pipeline of this magnitude is expected to take between two and three years to pass regulatory muster on both sides of the border. All things considered construction on the Altex Pipeline System could begin as early as mid 2010 with a completion date set for some time in late 2011.

Altex Energy Limited has awarded the early cost estimates and engineering for the Altex Pipeline System to Singleton Associated Engineering (Calgary, Alberta). The management of both Altex Energy and Singleton Associated Engineering were instrumental in the conception and construction of the Alliance Pipeline in the late 1990’s.

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