Mistral Energy has started shipping purity ethane to Canada from the US on its Vantage Pipeline and expects to increase levels to 60,000 b/d over the next two years, a company spokesman said Thursday.
The average volume in the "initial months" of operation is expected at 10,000-20,000 b/d, said the spokesman, Gordon Salahor.
The Vantage Pipeline carries purity ethane from near Tioga, North Dakota, through Saskatchewan and terminating near Empress, Alberta.
"The ethane will be used as feedstock for ethane crackers, which in turn feed polyethylene plants all operated by Nova Chemicals at their main manufacturing center at Joffre, Alberta," Salahor said.
Mistral confirmed the first shipment of purity ethane reached its terminal in Empress, Alberta, on May 2. This was also reported by the US Energy Information Administration on Tuesday.
Calgary-based Mistral has two shipping contracts on the Vantage Pipeline, both with Nova Chemicals, totaling 33,000 b/d of firm service for the next two years, Salahor said.
"Other companies have inquired about capacity and Vantage expects there could be other parties taking out capacity on the pipeline in the future," he said.
Based on the capacity of existing and planned petrochemical plants in Alberta, Vantage expects there should be a notional demand of 60,000 b/d ethane in the region. On the supply side, as planned construction for gas gathering and processing capacity increases in North Dakota, Vantage expects ethane production volumes will substantially exceed the capacity of the pipeline over time.
"As such, Vantage believes it is very reasonable to expect to ramp up towards the 60,000 b/d volume over the next couple of years," Salahor said.
