New Petroleum Tank Construction for Western Canada Could Reach 20 Million Barrels Over the Next Decade

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Researched by Industrial Info Resources (Sugar Land, Texas). New petroleum-related tank construction in Western Canada is set to take off due to over $100 billion in planned spending in the oil sands sector between 2006 and 2015. The planned spending in the oil sands sector does not include expected capital spending in the traditional Oil & Gas sector that will be centered in Alberta. Enbridge, Incorporated (NYSE:ENB ) (Calgary, Alberta) and Kinder Morgan Canada, Incorporated (Calgary, Alberta) will account for approximately 10 million barrels of liquids storage capacity.

Enbridge is planning to construct 7 million barrels of storage capacity and Kinder Morgan Canada is planning to construct the balance of the 10 million barrels of capacity. The remaining 10 million barrels of storage capacity being planned is spread across several bitumen producers planning expansions to existing facilities and many dozens of companies planning new facilities still on the drawing board. Aside from the primary production of bitumen from oil sands, there are approximately eight new bitumen upgraders in the planning phase and several under construction. Aside from the new facilities, all of the existing upgrader facilities in Alberta have expansion plans to take the facilities to 400,000 to 500,000 barrels per day.

Industrial Info Resources has been tracking oil sands-related projects since the 1990’s and is currently tracking 190 oil sands-related projects worth a total of $107 billion. The 190 oil sands projects cover construction in SAGD production, mining, upgrading and the storage & transmission of diluted bitumen and synthetic crude oil.

Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.