Inter Pipeline Ltd., which operates regional pipeline systems in Western Canada, has announced its plans to invest in a CAD $100 million expansion of its oil lines in Saskatchewan to add 95,000 barrels per day of new capacity.
Inter Pipeline has signed contracts with five producers that have agreed to ship oil on the lines. In total the company plans to add 90 kilometers of new pipelines to the system and expects the first phase of the expansion to be in service later this year and fully completed by mid-2015.
Saskatchewan oil production has been on the rise as producers tap into the northern edge of the prolific Bakken field and use horizontal wells and fracking to get to the province’s other oil reserves. Inter Pipe confirmed that its system has doubled over the past two years to 70,000 bpd.