An extensive pipeline system transports western Canadian oil to domestic and U.S. markets. There are two major oil pipeline operators in Canada: Enbridge Pipelines and Kinder Morgan Canada (formerly Terasen).

 

Enbridge operates a 9,000-mile network of pipelines and terminals, delivering oil from Edmonton, Alberta, to eastern Canada and the U.S. Great Lakes region. Kinder Morgan operates the Trans Mountain Pipe Line (TMPL), which delivers oil mainly from Alberta west to refineries and terminals in the Vancouver, British Columbia area.

The expansion of Alberta’s oil sands industry has necessitated the construction of several new pipelines to transport diluted bitumen and synthetic crude to downstream facilities in the Edmonton area. In 1999, Enbridge completed construction of its 920-mile, 570,000-bbl/d Athabasca pipeline, which links Suncor’s oil sands operations to Enbridge’s terminal in Hardisty, Alberta.

 

Kinder Morgan operates the 280-mile, 260,000-bbl/d Corridor pipeline linking oil sands production near Muskag River to an upgrader facility at the Shell oil refinery in Scotford, Alberta. In August 2005, Kinder Morgan began preliminary engineering work on doubling the capacity of Corridor system by 2009. Both companies plan to link other oil sands projects as the come on-stream.

Canada has extensive oil pipeline connections with the United States. Enbridge maintains connections between major Canadian cities and Chicago, seamlessly integrating the Canadian and U.S. components of its network. Enbridge also operates Spearhead, a 650-mile pipeline with a capacity of 300,000-bbl/d that originally carried oil from Cushing, Oklahoma to Chicago.

 

Enbridge received regulatory approval in late 2004 to reverse the flow of the pipeline, allowing it to export oil from Canada deep into the U.S. market. Kinder Morgan exports oil to the U.S. through an extension of the TMPL that reaches northern Washington. It also operates Express, a 790-mile, 170,000-bbl/d pipeline that links Hardisty, Alberta and Casper, Wyoming; from Casper, the company’s 930-mile, 120,000-bbl/d Platte pipeline runs to Wood River, Illinois.

Enbridge has sought regulatory approval for the construction of its 720-mile, 400,000-bbl/d Gateway pipeline from Edmonton to either Kitimat or Prince Rupert, both deepwater ports in British Columbia capable of supporting very large crude carriers (VLCC).

 

The Gateway pipeline would facilitate the export of oil sands to Asia and California. Enbridge stated that it could complete the $2 billion project by 2009, and in April 2005, PetroChina committed to purchasing at least half of the capacity of the Gateway pipeline. Kinder Morgan has discussed plans to build a similar pipeline and upgrade the capacity of the TMPL.