TransCanada Corporation announced Monday that it has entered into binding agreements with Phoenix Energy Holdings Limited to develop the Grand Rapids Pipeline project in Northern Alberta.
TransCanada and Phoenix will each own 50 percent of the proposed $3 billion pipeline project that includes both a crude oil and a diluent line to transport volumes approximately 500 kilometers between the producing area northwest of Fort McMurray and the Edmonton/Heartland region. The Grand Rapids Pipeline system is expected to be in-service by early 2017, subject to regulatory approvals, with capital spent between 2014 and 2017. The system will have the capacity to move up to 900,000 barrels per day of crude oil and 330,000 barrels per day of diluent. TransCanada will operate the system and Phoenix has entered a long-term commitment to ship crude oil and diluent on it.
The final Grand Rapids Pipeline route and design will be determined with Aboriginal and stakeholder input, as well as consideration for environmental, archaeological and cultural values, land use compatibility, safety, constructability and economics. TransCanada expects to apply for regulatory approval for the project in 2013.
The project will be constructed, owned and operated by the Grand Rapids Pipeline Limited Partnership, which is jointly owned by Phoenix and a wholly-owned subsidiary of TransCanada Corporation.