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Inter Pipeline to construct C$100M light crude pipeline in Alberta

Inter Pipeline Ltd. plans to build a new C$100-million pipeline connection that would deliver light crude oil to the Edmonton market hub, after receiving enough commercial support for the project.

The planned Viking Connector pipeline would run between Inter Pipeline's Bow River and Central Alberta pipeline systems and carry various grades of light crude from the Viking and Mannville formations in east-central Alberta, according to an Aug. 7 news release. The project marks the second phase of the company's development program for its Central Alberta system.

The project involves the construction of 75 kilometers of eight-inch-diameter pipeline and upgrades to the Throne station on the Bow River system, where the pipeline would connect to the Central Alberta system. The upgrades would include reconfiguring tank storage and expanding truck off-loading capacity.

"Producers in the Alberta Viking and surrounding plays are currently limited to pipeline services to the Hardisty hub or costly trucking alternatives," Inter Pipeline President and CEO Christian Bayle said. "This connection will provide economical access to the Edmonton market hub which historically has been a premium market for Alberta light oil products, a clear benefit for producers."

Upon completion, scheduled in the first half of 2020, the Viking Connector is expected to have throughput volume of 10,000 barrels per day to 15,000 bbl/d. About a third of the projected shipments are locked under a 10-year term, with more transportation contracts still under negotiations.