Canadian Manufacturing

Court decision clears way for Canexus oil-by-rail project

Work was halted Aug. 20, 2014, when MEG Energy Corp. refused to permit Canexus to perform previously scheduled work into an MEG pipeline



CALGARY—Canexus Corp. will restart construction to tie-in the Cold Lake pipeline system from Lamont Station into a pipeline operated by MEG Energy Corp.

The move follows a court decision to enforce a pipeline agreement between MEG and Canexus.

Work was halted Aug. 20, 2014, when MEG refused to permit Canexus to perform previously scheduled coldtap/cut work into the MEG pipeline.

Construction to perform this tie-in is expected to begin Sept. 9. Commission and start-up of the pipeline system for Cold Lake Blend product delivery to the Canexus’ North American Terminal Operations (NATO) unit train facility.

“NATO is a state-of-the-art, strategically located asset that provides our customers with a viable way to move their products to multiple markets. Once the tie-in work is completed, we will resume loading unit trains and expect to ramp-up operations to our contracted capacity of six to seven unit trains per week,” said Doug Wonnacott, Canexus president and CEO.

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