Under the terms of a 25-year ship-or-pay agreement, Inter Pipeline will provide AOC with an initial 4,500 barrels per day of committed capacity on its Polaris pipeline in support of the first production phase of the Hangingstone project.
AOC, through the Hangingstone Partnership, expects to develop the Hangingstone project in several phases over the coming years.
Inter Pipeline holds the exclusive right to provide diluent transportation for future phases of the project. Should all three planned phases be developed, Inter Pipeline estimates that the Hangingstone project may require up to 30,000 barrels per day of diluent.
Inter Pipeline will initially provide transportation service utilizing Polaris’ existing 12-inch diameter diluent mainline. A new $25m, 4km pipeline lateral with associated metering facilities will connect Polaris to the AOC Hangingstone oil sands facility.
Diluent capacity for Phases 2 and 3 of the AOC Hangingstone project is expected to be provided through a future extension of the new 30-inch diameter Polaris mainline that is currently under construction.
Inter Pipeline president and CEO David Fesyk said, "Inter Pipeline is pleased to add AOC to our growing portfolio of diluent delivery customers on the Polaris pipeline system."
