The Marten Hills pipeline system is expected to become operational in the second quarter of 2020
Rangeland Midstream Canada, a wholly-owned subsidiary of Rangeland Energy III, has started construction on the 85km long Marten Hills pipeline system.
The system includes new crude oil and condensate pipelines located in the Marten Hills region of north-central Alberta.
It will connect to Plains Midstream Canada’s Rainbow pipeline network to deliver crude oil and condensate from the Marten Hills area to the Edmonton hub and refining market.
The pipeline system is expected to become operational in the second quarter of next year.
Rangeland Canada business development vice president Briton Speer said: “Rangeland Canada is excited to announce that we have received all of the required permits and regulatory approvals that allow us to begin clearing rights of way in advance of pipeline construction, which is expected to begin later this month.
“The Marten Hills system will alleviate infrastructure bottlenecks and allow us to provide our customers with flow assurance and the safe, high-quality transportation services they need to access the best markets.”
The Marten Hills pipeline system is supported by long-term transportation agreements
Rangeland said that the pipeline system is supported by long-term transportation agreements with three crude oil producers who have made a combined minimum volume commitment representing 40% of the system’s capacity.
The agreements cover a 450,000-acre area of mutual interest (AMI) dedicated to the system.
The system is expected to collect the crude oil production from the Clearwater formation in the Marten Hills region which is emerging as a major economic play with low extraction costs using modern multilateral horizontal drilling. .
Headquartered in Sugar Land, Texas, Rangeland Energy is engaged in developing, acquiring, owning and operating midstream infrastructure for crude oil, natural gas, natural gas liquids and other petroleum products.
It is focused on emerging hydrocarbon production areas across North America.
Formed in 2016, Rangeland Midstream Canada serves oil and gas producers in western Canada with midstream services.