HOUSTON, April 21 /PRNewswire-FirstCall/ -- Capline Pipeline and Chicap Pipeline announced today that they will expand the range of transport capabilities on both systems to include light liquid hydrocarbons. The change will create a strategic transportation route for light liquid hydrocarbons from the US Gulf Coast to the origination point of the Enbridge Southern Lights Pipeline near Chicago, creating a linkage from the Gulf Coast to Alberta, Canada, as well as to other Midwest destinations.
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Capline and Chicap owners are working with the operators of both systems to determine the modifications required to safely and effectively expand the range of hydrocarbons approved for transport. Preliminary testing of an intermediate light liquid hydrocarbon in both systems earlier this year was successful and provided favorable data in support of the change. The modifications will allow the two systems to carry light hydrocarbons measuring up to 85 API gravity and 13.5 RVP. These light hydrocarbons, such as condensates and light naphthas, could be used as refinery feedstocks or to dilute bitumen (heavy, viscous crude oils) for efficient transport in pipelines.
The broader capability will enable Capline and Chicap to help meet the growing demand for light hydrocarbon streams in Western Canada by establishing a transportation route to Southern Lights. From the Chicago area, Southern Lights will ship these light hydrocarbons to Alberta, facilitating further development of Canadian heavy crude, a significant source of energy for North America. Capline and Chicap will play a leading role in this development by connecting Southern Lights to the global market of light hydrocarbon streams. Following final regulatory and owner approvals, these changes to Capline and Chicap are expected to be fully operational by mid-2010 with the potential to ship some light hydrocarbon streams by 2Q 2009.
The addition of light hydrocarbon service to Capline and Chicap will complement and broaden Capline's and Chicap's capabilities by more fully utilizing existing capacity on both systems. The addition of this service also provides shippers the flexibility to select movements from a wider range of system-approved hydrocarbons. Shippers, for example, may elect to take advantage of the expanded service by moving light hydrocarbons as feedstocks to various Midwest refineries.
Capline
Originating in St. James, Louisiana and ending in Patoka, Illinois, the Capline system consists of 632 miles of 40" pipe with 16 mainline pumping stations and over 10 million barrels of storage capacity. Through its St. James port and connections to third-party pipeline systems operating in Louisiana and the Gulf of Mexico, Capline provides a means to move domestic and international supplies of crude oil to a number of Midwest refineries and markets. Today, Capline's five owner companies each operate as individual common carriers on the system. With a capacity of more than a million barrels per day, Capline plays a strategic role in providing the United States with a reliable source of refinery crude feedstocks.
Chicap
The Chicap Pipeline System is a joint venture pipeline company consisting of over 200 miles of pipeline with a capacity of 300,000 barrels per day. The pipeline originates in Patoka, IL, where it can receive crude oil from a number of connecting pipelines. From Patoka, Chicap transports these crude feedstocks to various Midwest refineries and connecting carriers in the Chicago market.
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