Rangeland Midstream Canada, Ltd. a wholly owned subsidiary of Rangeland Energy III LLC, announced its plans to design, construct and operate new crude oil and condensate pipelines located in the Marten Hills region of north-central Alberta. The Marten Hills Pipeline System will extend approximately 85kms (52.8 miles) and consist of crude oil and condensate pipelines and related facilities. The 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 also include acreage dedications totaling approximately 450,000 acres.
The system will gather crude oil production from the Clearwater formation in the Marten Hills region, which is emerging as an extremely economic play with low extraction costs using modern multilateral horizontal drilling. The system will deliver blended crude oil to an existing third-party takeaway pipeline which serves the Edmonton, Alberta, hub, and refining market.