Canadian Utilities Ltd has announced it will build a billion-dollar pipeline in Alberta to transport natural gas as demand soars amid industrial expansion in the province, Reuters reports.
Construction is expected to begin on the new Yellowhead Mainline natural gas pipeline, which will feed a provincial petrochemicals plant and other industrial facilities, in 2026, with completion the following year, according to Reuters. The project requires regulatory approval and a final investment decision before proceeding.
The 124-mile pipeline will run from Peers, Alberta, to Edmonton, and Dow chemicals will be its primary consumer for an expanded petrochemicals plant in Fort Saskatchewan, Albert.
The announcement comes amid a push to expand Canada's role in the liquefied natural gas (LNG) market, with the country's first LNG export terminal set to start operations next year.
Last week, operations began on the Trans Mountain pipeline expansion (TMX) project, which foresees increasing Canada's crude exports by 590,000 barrels per day.
After a series of delays, cost-overruns, and legal challenges, the Canada Energy Regulator (CER) early last week issued the final permits for the launch of operations for the Trans Mountain Expansion Project (TMEP), authorizing the pipeline to carry crude oil from Trans Mountain's Edmonton Terminal in Alberta to its Westridge Marine Terminal in Burnaby, British Columbia.
The Canadian government has projected that the TransMountain pipeline expansion project, which cost nearly $23 billion to complete, will triple the capacity of the original pipeline to 890,000 barrels per day (bpd) from 300,000 bpd.
Suncor Energy, Canada's second-largest oil producer, said on Wednesday it would lease its own Aframax vessels to enable it to sell directly to bolster profits, Reuters reported.
During a Tuesday earnings call, Suncor reported that it beat analyst estimates for Q1 profits due to strong refined product demand and high output for oil sands.
By Charles Kennedy for Oilprice.com
Charles is a writer for Oilprice.com More