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Levering the Altex design to achieve the lowest total transport cost
Altex provides a comprehensive solution for western Canadian
heavy oil/bitumen producers.
The Altex Pipeline System will provide direct access to the U.S. Gulf Coast
(USGC), which
is the largest refinery market and largest
heavy oil/bitumen-consuming region in the world.
Moreover, the Altex Pipeline System will be complementary to ongoing
heavy oil/bitumen infrastructure development and investment in Alberta by providing its shippers with more
control and flexibility in their market options for bitumen destined not to be upgraded and/or refined in Alberta.
Altex will provide USGC refiners with direct access to increasing supplies of secure,
western Canadian heavy oil/bitumen to offset their expected reductions in feedstock from
current offshore sources.
The combination of the Altex Pipeline System's shorter, direct route to the
USGC and its proprietary Thermo-LEVR™ and
BIRDA™ technologies will result in:
- reduction or elimination of much of the costly
condensate diluent commodity value loss
currently incurred by bitumen shippers on conventional pipeline systems, and
- quicker pipeline transit time resulting in reduced commodity inventory costs.
Heavy oil/bitumen shippers on the Altex Pipeline System will achieve a decided economic
advantage in the marketplace by realizing a lower total transport cost. Total transport
cost includes pipeline tolls,
diluent cost and the time cost of inventory.
The total transport cost on the new
greenfield Altex Pipeline System, deploying proprietary
technologies, could be 1/3 to 1/2 the total transport cost of conventional pipeline systems
(existing and planned).
Altex will utilize Thermo-LEVR™ and BIRDA™ in a pipeline system design that:
- eliminates the need for costly
condensate
diluent, but will accept all current diluents;
- transports more net bitumen than can be carried by
condensate diluted bitumen in conventional design pipeline systems;
- enhances segregation of individual shipper's batches;
- uses a direct route that reduces in-transit inventory costs by up to 70%
compared to existing circuitous, longer routes;
- uses conventional pipeline equipment;
- requires capital investment that is comparable to that of new, conventional
technology pipeline systems; and
- allows for significant future expansion capability.
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