Canada's largest independent power producer has received approval from the majority of its applications to build and operate the Grand Rapids Pipeline Project this fall.
Alberta Energy Regulator granted approval to TransCanada Corporation for the pipeline which will connect the producing area northwest of Fort McMurray, Alberta to terminals in the Edmonton/Heartland region in Canada. The pipeline will have an expected capacity to move up to 900,000 barrels of crude oil per day.
The company plans to begin the construction of the 287-miles-long (460 kilometers) pipeline, and expects to pump its first crude oil by mid-2016.
'The pipeline will be a critical piece of infrastructure to support the long-term growth plans and increased oil production in the Alberta oil sands and other oil-producing areas in northern Alberta,' said Russ Girling, TransCanada's president and chief executive officer, according to a press announcement.
'The proposal was for two mainline pipelines,' said Jennifer Winter, associate director of energy and environmental policy at The School of Public Policy, University of Calgary in Canada.
'The smaller pipeline, with a capacity of 330,000 barrels per day, will be built first and ship diluted bitumen -- also known as asphalt - from the oil sands region to Edmonton,' Winter said, adding that the second one will have a capacity of 900,000 barrels per day.
Winter stated that once the second pipeline is constructed, the smaller pipeline will be switched to a condensate pipeline to be used to bring condensate - a light hydrocarbon obtained from natural gas wells - from Edmonton to the oil sands area.
'While the proposed pipelines are large, the project does not improve access to tidewater or refineries in the U.S.,' she added.
Canada's oil sands make up most of the country's proved oil reserves, which rank third globally, while almost all of Canada's crude oil exports are directed to U.S. refineries, according to the U.S. Energy Information Administration.
TransCanada has partnered with Brion Energy Corporation, formerly known as Phoenix Energy Holdings Limited, through a joint venture to develop Grand Rapids. Each joint venture partner owns 50 percent of the $3 billion pipeline project, which will be operated by TransCanada, the statement said.
By Ovunc Kutlu
Anadolu Agency