The Bow River Pipeline system gathers oil production in southern Alberta for delivery north to the oil storage and marketing hub at Hardisty, Alberta and south to interconnecting export pipelines near the Montana border. The existence of multiple mainline transmission pipelines and flexible pumping configurations allow oil to flow in both directions.
In 2008, the Bow River system delivered 26,000 b/d north to Hardisty and 89,500 b/d south to the Montana border. Southbound shipments consisted of 62,000 b/d of locally gathered Bow River crude oil and an additional 27,500 b/d of oil sourced from the Hardisty oil storage hub. Southbound deliveries on the Bow River system are currently shipped as a single, commingled blend of oils.
Bow River Pipeline
Inter Pipeline Fund (“Inter Pipeline”) (TSX:IPL.UN) announced that it will invest approximately $72 million to expand oil delivery capabilities on the Bow River Pipeline system. The project will allow customers, for the first time, to ship segregated crude oil streams south from Hardisty, Alberta to refining markets in Montana. In support of its investment, Inter Pipeline has received shipping commitments to transport 30,000 barrels per day (“b/d”) of segregated crude oil from Hardisty under a 7-year take-or-pay contract.
David Fesyk, Inter Pipeline’s President and Chief Executive Officer, commented “The Bow River segregation project has been developed in direct response to customer demand for more flexible shipping options from the Hardisty market hub. At the same time, it will strengthen our competitive position as the primary supplier of Canadian crude oil to the Montana refining market.”