June 16, 2009
Oilsands Construction
New pipeline aims to take a bite out of oilsands emissions
Oklahoma-based Williams plans to build a pipeline that will generate some environmental benefits by transporting natural gas liquids from its extraction plant in Fort McMurray to its Redwater processing facility.
“The pipeline will support the future removal of ethane from the oilsands off-gas, which will further decrease greenhouse gas and sulfur dioxide emissions and provides a critical feedstock for Alberta chemical companies,” said Alan Armstrong, president of Williams’ midstream business.
The proposed 417 kilometre pipeline project is expected to cost US$283 million and to begin construction in 2010.
The anticipated completion date is April 2012.
Williams processes off-gas from Suncor Energy’s oilsands facility in the Fort McMurray area, extracts the natural gas liquids and olefins and transports them via the Suncor Oilsands Pipeline.
The proposed new 12-inch pipeline will provide additional capacity for Suncor liquids, as well as natural gas liquids from other oilsands producers’ off-gas.
Williams is the only processor of oil-sands off-gas.
Companies in the Fort McMurray area that upgrade bitumen from the oilsands to synthetic crude currently produce off-gas containing about 90,000 barrels per day of natural gas liquids and olefins from oilsands production.
Most of these liquids are now burned as fuel.
This results in higher greenhouse gas and sulfur dioxide emissions than would happen from burning an equivalent amount of natural gas.
“The work undertaken at our facilities reduces emissions of carbon dioxide (CO2) — a greenhouse gas — in Alberta by 219,000 tons each year and cuts emissions of sulphur dioxide (SO2) — a contributor to acid rain — by more than 3,200 tons each year,” said Julie Gentz, manager of external communications at Williams.
“By processing the off-gas, Williams’ facilities in Canada annually prevent the release of CO2 emissions equal to the carbon footprint of 44,000 Albertans.”
Once extraction is done, Williams gives the natural gas back to the oilsands producers to fire their plants.
The remaining natural gas liquids are now seed products for the development of a new petro-chemical industry.
“The petrochemicals that our products go into are mostly polypropylene but also ethylene, polyethylene, and other derivatives of ethylene,” said Gentz.
“These chemicals are used in the production of packaging, textiles, automotive parts, reusable containers, trash liners, insulation, and in the production of detergents.
With the expected addition of off-gas processing facilities similar to Williams’, more of these liquids will be recovered and made available for transportation on the proposed pipeline.
The project requires approval from the Energy Resources Conservation Board and other Canadian regulatory agencies.
In addition, Williams will continue to conduct on going public consultation with area communities and other stakeholders.
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