Terasen Expands its Express Crude Oil Pipeline System

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Terasen Incorporated (TSX: TER) (Calgary, Alberta) business unit, Terasen Pipelines (Calgary, Alberta) is in the process of expanding its Express Pipeline, a 172,000-barrel per day crude oil pipeline originating in Hardisty, Alberta, and running in a South by Southeast direction to Cheyenne, Wyoming. The flow of the pipeline is supported by nine existing pump stations and there is a storage terminal at both Hardisty and Cheyenne. Terasen received a commitment for 105,000 barrels per day of expanded crude transportation service during an open season in late 2003. In mid-2004, Terasen began construction on the Express Expansion Project, which will increase total system capacity from its present 172,000 barrels per day to 280,000 barrels per day, when completed in April of 2005.

The scope of the expansion includes the addition of a new 4,000 horsepower electric-drive pump unit at each of the nine existing stations on the line, as well as the construction of nine new pump stations along the line, each constructed around a single 4,000 horsepower electric-drive pump. Both terminals at Hardisty and Casper will have two new 150,000-barrel crude oil storage tanks constructed to increase storage volumes associated with the increased pipeline capacity. Construction on the new storage terminals began in the early summer of 2004 and Terasen expects to begin awarding the pump station contracts beginning in August of 2004. At one time, the new pump stations and the pump station unit additions were considered phases I and II, respectively, but the level of interest expressed during the open season was enough to support constructing both phases at the same time. Capital estimates for the expansion range from $80-100 million dollars.

Terasen is also considering some substantial looping work on the Express system, which could come to construction in 2007. Industrialinfo.com first began tracking this pipeline system expansion in October of 2000.

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