Enbridge has decided to build a 385km extension to its Woodland pipeline, connecting its Cheecham and Edmonton terminals, by the third quarter of 2015.
The company will contribute 50% to the project, which is estimated to cost $1.3bn.
Intended to serve the Imperial Oil and ExxonMobil Kearl oil sands project, the 36in (914mm) Woodland pipeline extension will initially carry 400,000 barrels per day (bpd) with further increase in capacity to 800,000 bpd depending on crude viscosity.
Enbridge Liquids Pipelines and Major Projects president Stephen J. Wuori said, "Extension of the Woodland Pipeline will bring additional crude oil transportation capacity into the Edmonton area, enabling us to accommodate forecasted regional oil sands production growth from the Kearl project and other oil sands projects targeted for delivery into the Edmonton hub."
The project, which includes new pump stations at the existing Roundhill station location and at the Cheecham terminal, received a regulatory approval from the Alberta Energy Regulator in August 2012.
Including the new pipeline, the company is building projects worth $4.3bn in 2013-15 to serve the increasing demand from the Alberta oil sands players.