Description: A medium-sized Midstream pipeline operator (the operator) had a 16-inch diluent mainline that was put into service in 2007 in Alberta, Canada. As they continued to expand their operations, the pipeline did not have enough capacity to meet the demands of its customers. As a result, a larger 24-inch pipeline was constructed and began operations in 2014. With the majority of products flowing through the newer pipeline, the original 16-inch diluent mainline was discontinued in 2015.
In early 2020, the operator assessed the business opportunity to return the 16-inch diluent mainline back into service to reduce the environmental impact and capital costs by reusing existing infrastructure.
Date Published: March 22, 2022