On Thursday July 2 the Government of Canada, along Alberta’s provincial government, announced a proposal for a heavy crude oil pipeline capable of transporting more than 1 MMb/d from Bruderheim, AB (near Edmonton) to a deepwater port at Roberts Bank just south of Vancouver, BC (see map below).
The project would entail the construction of a new 42-inch diameter, 1,211-km (752-mile) pipeline, largely following the existing right-of-way of the Trans Mountain Expansion (TMX) pipeline, but unlike TMX, would terminate at deepwater port (Roberts Bank), with berths for two VLCC oil tankers (TMX’s Westridge, BC marine terminal has berths for three Aframax vessels). The project may also consider the potential for trans-loading from TMX’s Aframax vessels onto VLCCs at Roberts Bank.
The proposal Alberta submitted to the Major Projects Office estimated a construction cost of CAD$35.2 billion if a positive Final Investment Decision (FID) is made in 2027, with an estimated in-service date of 2032, or alternatively a CAD$43.7 billion cost estimate if a positive FID decision occurs in 2028 with an in-service date of 2034.
The joint venture company that would own the project consists of the Alberta Petroleum Marketing Commission (APMC), Trans Mountain Corporation (TMC, owner of the Trans Mountain pipeline), and Pembina Pipeline Corporation. APMC and TMC are owned by the Alberta and Canadian governments, respectively. Pembina would have a 10% economic interest through construction, with the option to increase to 20% once the project is operating.
The project has been referred to Canada’s Major Projects Office, who will consider listing it as a national interest project by October 1. This news is part of a larger set of announcements from the government of Canada regarding nation-building infrastructure development, primarily within British Columbia. The Premier of British Columbia has agreed not to oppose this pipeline project.
The Alberta and federal Canadian governments, along with Oil Sands Alliance (OSA, a partnership of the five largest oil sands producers), are finalizing an agreement on regulatory reforms and growth incentives to expedite oil sands production growth and include conditions necessary for OSA to build the Pathways CO2 sequestration project. Details of this agreement are expected to be release “in the coming days”.
At this early stage for the project, there does not appear to be any binding commitments made by shippers.
