Construction of the $100 million 80 kilometers pipeline project will start in September 2006 and will be completed in two phases. The first phase involves the installation of two 20-kilometer sections of 24-inch pipe and associated pumps north of Wainwright, Alberta and north of the Battle River, Alberta pumping station and is anticipated to be operational by the second quarter of 2007. The second phase will consist of installing the remaining 40 kilometers of 24-inch pipe from Lloydminster to Wainwright, with completion scheduled in the fourth quarter of 2007. The expansion project includes laying pipe, upgrading pumps and installing associated equipment at the terminals and pumping station.
"The expansion of Husky's mainline system between Lloydminster and Hardisty is a key component to transport Husky's crude products to a growing energy market," said Mr. Lau, President & CEO. "Our pipeline infrastructure will play an increasingly important role as Husky seeks midstream and downstream solutions for developing our oil sands and heavy oil assets in this region."
Husky owns and operates a 2,050 kilometers pipeline system centered at Lloydminster where volumes from its Tucker Oil Sands Project, on the Cold Lake Gathering System and volumes from the Saskatchewan Gathering System are collected and shipped, via Husky's Mainline System to its Hardisty Terminal. The terminal handles in excess of 430,000 barrels per day of product ranging from light and synthetic to blended heavy crude, and accounts for over 25 percent of the total volume of crude oil exports from Western Canada.
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