May 27, 2010
Building on the strategic location of our NGL infrastructure in the Edmonton/Fort Saskatchewan hub and the strength of our assets, we are continuing see our vision for our NGL business unfold.
In November 2009, we entered into a long-term, fee-for-service agreement to provide diluent transportation, storage and rail offload services in the Edmonton/Fort Saskatchewan area for Imperial Oil's Kearl oil sands project. We followed this up earlier this spring with another related multi-year fee-for-service agreement with Imperial Oil to provide segregated solvent handling services, including rail offloading, storage and truck loading.
In conjunction with these agreements, plans are well underway to extend our existing condensate system running between our Fort Saskatchewan facility and our Edmonton Terminal with the construction of approximately 22 kilometres of new pipeline to the north and east of Fort Saskatchewan, and a 1 km pipeline south into the Enbridge Edmonton terminal. We are also taking the next steps in developing our storage capacity at the Alberta Diluent Terminal and our Fort Saskatchewan facility. With work on the regulatory approvals for these projects well underway, we are excited about the potential opportunities that lie ahead.
Our capacity to handle a variety of products, together with the enhancements these projects will bring to our infrastructure and our sound business model, position us very well to continue to deliver competitive services to our producer customers in support of their oil sands development activities.