Rangeland Midstream Canada Ltd., a wholly owned subsidiary of Rangeland Energy III LLC, on Oct. 16 said it has commenced the construction of its Marten Hills Pipeline System. The system consists of new crude oil and condensate pipelines located in the Marten Hills region of north-central Alberta.
The Marten Hills Pipeline System will extend about 85 km (52.8 miles), terminating at an interconnect with Plains Midstream Canada’s Rainbow Pipeline System, which serves the Edmonton, Alberta, hub and refining market. The Marten Hills system is expected to come into service in the second quarter of 2020.
The system is anchored by long-term transportation agreements with three of the region’s largest crude oil producers, who have made a combined minimum volume commitment representing 40% of the system’s capacity. The agreements span a 450,000-acre area of mutual interest dedicated to the Marten Hills system.
“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,” said Rangeland Canada Vice President of Business Development Briton Speer. “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.”
Output at the largest formation, the Permian Basin of Texas and New Mexico, is expected to rise 57,000 bbl/d to 4.73 MMbbl/d.
Plans are for the well, which was drilled into two untested fault blocks east of the Cashima Field, to be completed by the end of November, the company said.
The breakthrough follows months of talks between the two companies over what to charge for processing gas from the field through Woodside’s Pluto LNG plant.