BC Gas Begins Construction of Corridor Pipeline in Alberta

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The following is an advisory by Industrialinfo.com (Industrial Information Resources Inc.; Houston, Texas). BC Gas Incorporated (TSE: BCG) (Vancouver, B.C.)BCG/ has initiated thebegun construction of a $440 million 280-Mmile twin pipeline system as part of the Athabasca Oil Sands Project. The twin lines will connect Shell Canada's Muskey River Oil Sands Mine in northern Alberta to Shell Canada's crude up-grader adjacent to its Scotford refinery, which to produces synthetic crude oil for the merchant market. Colt Engineering Corporation (Edmonton, AB) was awarded the pipeline construction contract and SNC-Lavalin Incorporated (Montreal, PQ) was awarded the pump station design contract.

The pipeline system is composed of one 24 diameter line transporting 215,000 barrels per day of diluted bitumen south to the up-grader and one 12 diameter line transporting 65,000 barrels per day of solvent north to the mine. Other facilities include five 20,000 horsepower pump stations on the pipeline route, with another two pump stations at the up-grader and storage facilities capable of handling 2.1 million barrels of product.

BC Gas's newly formed subsidiary, Corridor Pipeline Limited, will own the pipeline and another BC Gas subsidiary, Trans Mountain Pipe Line Company Limited, will operate the pipeline. BC Gas is an energy company with over $2 billion in assets and net revenues of $108 million in the year 2000 providing a 12 percent return on equity.