* Heartland Pipeline to ship up to 900,000 barrels/day of
* Terminal to have storage capacity of 1.9 mln barrels
* Projects expected to come online in second half of 2015
May 2 TransCanada Corp, Canada's No. 2
pipeline company, said it would spend an estimated $900 million
to build and operate a 200-km (125-mile) oil pipeline and
storage terminal to handle growing crude production in Alberta.
TransCanada said on Thursday it had reached long-term
shipping agreements to build the Heartland Pipeline to link the
Edmonton region to facilities in Hardisty, Alberta, as well as
the terminal in the Heartland industrial area north of Edmonton.
The projects are expected to come into service in the second
half of 2015, TransCanada said.
The company said it expects the pipeline ultimately to
transport up to 900,000 barrels per day of crude oil. The
terminal is expected to have storage capacity for up to 1.9
Alberta oil production is projected to increase by almost 3
million barrels per day over the next 15 years, TransCanada
Oil and gas companies are scrambling to build infrastructure
to transport growing crude oil supplies from the landlocked
province of Alberta.
Delayed pipeline projects and excess supply mean Alberta's
heavy crude has often been selling at a deep discount to world
prices, although the price gap has narrowed recently.
TransCanada currently operates 24,200 km (15,000 miles) of
natural gas pipelines across Alberta and 3,500 km (2,150 miles)
of crude oil pipelines through its Keystone Pipeline network.