Inter Pipeline announced that it has completed capacity expansion work on its Polaris Pipeline system in support of the second phase of the Kearl oil sands project operated by Imperial Oil Resources Ventures. In August 2013, Imperial exercised its contractual option to increase its firm capacity commitment on the Polaris Pipeline system from 60,000 barrels per day to 120,000 barrels per day. This prompted a USD 45M pump station expansion, which is now in service.
As part of the expansion, Inter Pipeline re-commissioned three existing pump stations on the 12″ diameter mainline that runs between Lamont, Alberta and the Kearl site north of Fort McMurray. The capacity of this pipeline segment has been increased to approximately 165,000 barrels per day, bringing the total installed capacity of the Polaris pipeline system to approximately 865,000 barrels per day.
“Polaris remains the largest merchant diluent system in the area, with 540,000 barrels per day of diluent capacity commitments from eight oil sands producers”, said Christian Bayle, president and CEO of Inter Pipeline. “With an ultimate transportation capacity of 1.3 million barrels per day, we are well positioned to continue to cost effectively capture new transportation opportunities as regional production grows over time.”
