Lloyd pipeline awaits green light

By Geoff Lee

April 4, 2018 2:00 PM

The proposed $80 million Husky Midstream Saskatchewan Gathering System pipeline project is awaiting regulatory approval. Back in early November Husky held an open house to explain the project. Mel Duvall, a spokesperson for Husky Energy, points to where a new 20-inch oil pipeline and 8-inch condensate line will cross the North Saskatchewan River. The project is expected to generate 275-500 direct construction jobs. GEOFF LEE LLS PHOTO

Husky Energy’s application to expand its Saskatchewan Gathering System with a new pipeline project is still before the regulator.
“We have not yet received approval, so for now, we cannot say when it will go ahead,” said Husky spokesperson Mel Duvall.
Husky expects the proposed project to generate an estimated 275-500 direct construction jobs.
The company held open houses in Maidstone and Lloydminster last November hoping construction of the full project will start this summer and take about six months to be complete by the first quarter of 2019.
Husky plans to build an expanded gathering system pipeline from their growing thermal operations north of the North Saskatchewan River connecting to upgrading and refining operations in Lloydminster.
The project involves the construction of a 52 kilometre 20-inch crude oil pipeline and a parallel 8-inch condensate line that will initially connect to the Spruce Lake North and Spruce Lake thermal facilities that will come on production in 2020.
It includes replacing about five kilometres of smaller pipelines in the system.
The proposed $80 million project will be funded by the Husky Midstream Limited Partnership that owns about 1,900 kilometre of pipelines in the Lloydminster region, with Husky as the operator holding a 35 per cent ownership interest in the partnership.
There are also plans to build a new 9.5 kilometre long, 20-inch diameter raw water pipeline to existing and future thermals for steam production on the same pipeline right of way.
Both oil and condensate pipelines will cross under the North Saskatchewan River.
The proposed crossing point is about four kilometres downstream from where 225,000 litres of blended oil leaked from a break in Husky’s 16-inch TAN (Tangleflags) pipeline in July 2016, spilling 90,000 litres of mixed oil into the river.
The plan calls for the lines to be bored at a depth of 80 metres under the river with safety features such as automated valve sites at both sides of the water crossing to isolate product.
Fibre optic monitoring will be installed along the entire length of the pipeline from Lloydminster to the end point at Husky’s Celtic junction along with 24/7 leak-detection devices.
Once the line is completed by the first quarter of 2019, Husky will decommission the repaired 16-inch TAN pipeline.
Husky was given the okay to restart the pipeline last October.
Meanwhile, court proceedings against Husky Energy Ltd. arising from the 2016 pipeline leak into the river have been adjourned until June 21 following an initial provincial court appearance in Lloydminster on March 29.
The Calgary-based company faces a total of 10 charges of violating Saskatchewan and federal environmental laws. The charges were announced in late March after a 19-month joint federal-provincial investigation.

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