Rangeland Energy III’s Rangeland Midstream Canada unit Tuesday announced plans to design, construct and operate new crude oil and condensate pipelines in the Marten Hills region of north central Alberta, Kallanish Energy reports.
The Marten Hills Pipeline System will extend roughly 52.8 miles and include crude oil and condensate pipelines and related facilities. The system is expected to come online in the second quarter of 2020.
The system is anchored by long-term transportation agreements with three unnamed producers, said to be the region’s largest crude producers, which combined have signed for a minimum volume commitment equaling 40% of the system’s capacity.
The agreements also include acreage dedications totaling roughly 450,000 acres.
The system will gather crude oil production from the Clearwater formation in the Marten Hills region. The system will deliver blended crude to an existing third-party takeaway pipeline which serves the Edmonton, Alberta, hub and refining market.
Condensate will be received from a third-party pipeline and delivered to production facilities for diluent blending.
“We are providing a timely and creative midstream solution in an emerging play, alleviating potential infrastructure bottlenecks and allowing our producer customers to concentrate on growing their production,” said Rangeland Canada vice president of Business Development Briton Speer.
Texas-based Rangeland Energy was formed in 2009 to focus on developing, acquiring, owning and operating midstream infrastructure. Rangeland Midstream Canada, headquartered in Calgary, was formed in 2016 to serve oil and gas producers in western Canada.
Rangeland is backed by venture capital provider EnCap Flatrock Midstream.
This post appeared first on Kallanish Energy News.