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The Altex Pipeline System is needed
The Western Canada Sedimentary Basin (WCSB) contains significant oil resources, primarily in
northern Alberta and predominantly in the form of
bitumen. Both the
Alberta Energy and Utilities
Board and Canada's
National Energy Board
estimate that this resource base is second only to
Saudi Arabia in global oil reserves.
The
Canadian Association of Petroleum Producers
(CAPP) forecasts that more than two million
barrels per day of incremental heavy oil/bitumen production in Alberta will be added over
the next ten years. This and other relevant information is contained in CAPP's Crude Oil
Forecast, Markets and Pipeline Expansions, June 2007.
In a June 25, 2007 news release associated with the aforementioned study, CAPP states,
"The growth in crude oil supplies will need more pipeline capacity to ensure access to both
new and existing markets. Numerous new pipeline proposals and expansions of existing pipelines
have been announced in recent years. Producers and shippers are assessing the alternatives to
determine which projects will get market support." CAPP adds that, "the pipeline projects
that are currently in various stages of development will provide sufficient capacity to the
2010 - 2012 period, if they receive regulatory approval and proceed according to plan." CAPP
concludes that, "there are numerous pipeline proposals to various markets in North America
post 2012, but given the timelines to obtain regulatory approvals and to construct; the
market must now focus on the next round of new capacity."
The industry acknowledges that new, large-scale oil pipeline capacity additions will be
required. Altex proposes to meet the challenge. The Altex Pipeline System can accommodate
throughput volumes ranging up to 1,000,000 barrels per day, depending on the level of
contracted demand. As such, the Altex Pipeline System design provides the ability to
expand its capacity to provide a platform for growth to meet its customers' needs.
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