CALGARY—TransCanada Corp. says it has reached binding long-term shipping agreements to build, own and operate the proposed Alberta-based Heartland Pipeline and TC Terminals projects.
The proposed projects are being developed to support growing crude oil production in Alberta and will include a 200-kilometre pipeline connecting the Edmonton region to facilities in Hardisty, Alta., and a terminal facility in the Heartland industrial area north of Edmonton.
TransCanada anticipates the pipeline could ultimately transport up to 900,000 barrels of crude oil a day, while the terminal is expected to have storage capacity for up to 1.9 million barrels of crude oil.
The projects have a combined cost estimated at $900-million and are expected to come into service during the second half of 2015.
“With Alberta oil production projected to increase by almost three million barrels per day over the next 15 years, it is important to have the right infrastructure in place to move these resources safely and reliably to market at the right time,” TransCanada’s president of energy and oil pipelines Alex Pourbaix said in a statement.
“These projects will help link Canadian crude oil resources in northern Alberta to markets in Eastern Canada and the United States.”
TransCanada first launched a feasibility study into the projects in the fall of 2012.
The company says it intends to file a regulatory application for the terminal in spring 2013, followed by a separate application for the pipeline in the fall.