August 13, 2012

$600 million pipeline contract awarded

A joint venture between Aecon Group Ltd. and Robert B. Somerville Co. Limited has been awarded a $600 million contract by Inter Pipeline Fund to complete the expansion of the Cold Lake and Polaris pipelines in Alberta.

The Aecon Utilities division is participating in the 50/50 joint venture.

The scope of work includes the installation of 560 kilometres of underground pipeline for the distribution of diluent between Edmonton and Fort McMurray, Alta., as well as engineering support and constructability reviews.

Work is scheduled to begin in January 2013, with completion expected in 2016.

“This large award showcases the high demand for pipeline construction services in Western Canada,” said Teri McKibbon, Aecon’s chief operating officer.

The Cold Lake pipeline system is the sole transporter of Cold Lake area bitumen production, according to the Inter Pipeline website.

It currently has the capacity to transport roughly 650,000 barrels per day of bitumen blend. Inter Pipeline is currently adding pump stations to the west leg of the Cold Lake pipeline system, which will boost Cold Lake throughput capacity from 535,000 to 650,000 barrels per day by 2013.

The 12-inch Polaris pipeline system is being developed as a stand-alone diluent transportation system serving the Athabasca oilsands region.

The Polaris system is expected to go into service in late 2012, and has already secured two long-term contracts that will utilize 90,000 barrels per day, or approximately 75 per cent of its initial capacity, according to Inter Pipeline.

JOC DIGITAL MEDIA

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