Pipeline Systems & Processing Facilities

Husky has been involved with the gathering, transportation and storage of heavy crude oil in the Lloydminster area on the Alberta and Saskatchewan border since the 1960s. The Company has more than 2,000 kilometres of crude oil pipeline with a capacity in excess of 719,000 barrels per day (719 mbbls/day) of blended heavy crude oil, diluent and synthetic crude oil. Combined throughput in 2008 was 507 mbbls/day.

The pipeline infrastructure includes two pipelines, one in Alberta and the other in Saskatchewan. The pipeline system transports blended heavy crude oil to the Lloydminster pipeline terminal which serves as the hub for Husky’s heavy oil upgrader and asphalt refinery in Lloydminster.

Blended heavy crude oil and bitumen from heavy oil operations and synthetic crude oil from the upgrading operations are shipped from Lloydminster via Husky’s Mainline pipeline to Hardisty, Alberta, to connect with the Enbridge, Kinder Morgan (Express), InterPipeline Fund (IPF) and the TransCanada Keystone pipelines. These pipelines transport the oil to markets in eastern Canada and the United States.

Husky has feeder pipeline interconnections with the IPF Cold Lake Pipeline at Cold Lake and Hardisty, as well as the Echo Pipeline, Chauvin Pipeline and Gibson Terminal at Hardisty, all located in Alberta.

Heavy Crude Pipelines

In recent years, Husky expanded the heavy crude oil pipeline systems to accommodate increased heavy oil production from the Lloydminster area and the production of bitumen from the Company’s oil sands projects. In 2008, the Company completed an 80-kilometre expansion between Lloydminster and Hardisty of its Mainline crude oil pipeline system.

The expansion carries production from the Tucker Oil Sands Project and shipments from third parties. Husky’s Hardisty terminal currently handles in excess of 494 mbbls/day of product ranging from light and synthetic to blended heavy crude oil, and accounts for approximately 25 percent of the total volume of crude oil exports from Western Canada.

In 2009, two 300 mbbls storage tanks were commissioned at the Hardisty Terminal, increasing storage capacity at the facility to 2.26 mmbbls.

Pipelines Fact Sheet

Alberta Heavy Oil Pipeline

Husky’s Alberta Heavy Oil Pipeline system consists of approximately 1,445 km of pipeline with sizes ranging from 89 mm (3”) to 610 mm (24”) extending from 180 km northwest of Lloydminster to approximately 120 km southwest of Lloydminster.

The Cold Lake System has six pumping stations and two booster stations shipping heavy crude blend into the Lloydminster Terminal.

At the Lloydminster Terminal, the heavy crude product is delivered to Husky’s heavy oil upgrader and asphalt refinery or transferred to the Hardisty Terminal for external markets. Diluent products are received from the Upgrader, Refinery and Hardisty, and are used to blend the heavy crude received from the Cold Lake System and Saskatchewan Gathering System. There is 969 mbbls of storage capacity in the tank farm at Lloydminster.

The Mainline Pipeline System moves products between the Lloydminster and Hardisty terminals with one booster station. This system moves two segregated heavy crude blends as well as synthetic crude from the Upgrader to Hardisty. It also transports diluent from Hardisty to Lloydminster.

Three smaller gathering systems -- Battle River, Wainwright and Kinsella -- with a total of fourteen oil batteries, tie into the Mainline system delivering an average of 17.2 mbbls/day of lighter-density heavy crude blends.

Husky’s Hardisty Terminal can receive crude products from the Mainline system, the Talisman Chauvin Pipeline and trucked-in volumes. These products are then shipped by batches in the Enbridge, Express, IPF, and Keystone pipeline systems for transport to market. Diluent can be received at the terminal from the Enbridge Pipeline and by truck.

Since 2004, Western Canadian Select has been blended at the Hardisty Terminal. This stream is becoming an industry benchmark for heavy oil and averages 281 mbbls/day.

Husky’s Alberta System handles an average of 488.3 mbbls/day of products which include three grades of crude, diluent, and synthetic crude from the Upgrader.

Saskatchewan Heavy Oil Pipeline

Husky’s Saskatchewan Heavy Oil Pipeline System consists of approximately 580 km of pipeline with sizes ranging from 60 mm to 508 mm and extends approximately 70 km (43 miles) east of Lloydminster.

The infrastructure is known as the Saskatchewan Gathering System (SGS) and consists of seventeen pumping stations and two booster stations delivering heavy crude oil blend to the Lloydminster Terminal. Diluent from the Lloydminster Terminal is received at the pumping stations and is used to blend the heavy crude oil prior to it being pumped to the terminal.

The Husky Border Pipeline handles an average of 162.7mbbls per day of products, which includes crude oil, diluent, distillates and synthetic crude oil from  Husky’s Heavy Oil Upgrader.

The Saskatchewan Gathering System handles a total of 311.5 mbbls of products per day.

Emergency Readiness & Public Safety

Husky has a comprehensive emergency response plan in place, which instructs employees how to respond to a public safety or environmental event. The plan is tested on a regular basis.

Husky realizes the need to quickly and effectively deploy Company resources should an emergency situation occur.

Employees and contractors are trained, and annual exercises are held to test and continuously improve performance. They are trained to apply experience, and comprehensive procedures to act decisively when confronted with an emergency situation, taking action to protect life, the environment and physical assets.

Husky is diligent to take action and report any situation that could impact the public, to the appropriate regulatory agency. Husky works with the regulators and the affected communities in keeping the public informed and address all events.

Husky undertook a major new initiative in 2008, the Husky Operational Integrity Management System (HOIMS) which designs and develops processes to achieve a future state where all hazards and risks associated with operations are identified, and then controlled or eliminated.

Environmental Protection

Field operators and contractors are responsible for operating Husky’s facilities in accordance with environmentally sound operating practices and all regulatory requirements.

Sound operating practices are the most practical means of protecting the environment and reducing environmental impact. These practices include regular inspections and maintenance, supplying the right materials for the job, timely response to spills and leaks, waste management and adequate training.

Pipeline Operations

Husky’s pipelines are designed, constructed, operated and maintained in accordance with Canadian Standards Association (CSA) standards for oil and gas pipeline systems.

The pipeline system is divided into sections that can be isolated by remotely controlled block valves which are tested annually. The majority of the system is designed and licensed to operate at up to 9,930 kilopascals (1,440 pounds per square inch).

Pipelines are monitored and controlled from a 24-hour per day modern control centre, located in Lloydminster. The computer control system monitors pressures, temperatures and flow rates, as well as other parameters along the pipeline. The control system also monitors the operating characteristics of the pipeline and will automatically alert the control centre operator should a leak be suspected.

The system is set to check for leaks every minute. The leak detection system software and operator response is tested annually on each segment of the system by simulating conditions that resemble an actual leak.

Control centre operators are required to investigate all alarms, and if unexplained, to immediately shut down the pipeline and initiate investigative and corrective measures.

Husky has a comprehensive pipeline integrity program that includes cathodic protection of the entire pipeline system, internal inspection surveys on a three to seven year cycle, corrosion chemical injection, pipeline cleaning, and aerial surveillance of all pipeline right-of-ways every two weeks.

Community Awareness

The pipeline system is marked along its length with warning signs identifying the pipeline owner and the emergency numbers.

Husky actively participates in organizations engaged in encouraging and promoting safety around buried pipelines.

Major additions or expansions that have public impact go through a public consultation process prior to permit application and construction.

Pipeline Contact Information

Rick Corrin,
Operations Superintendent, Lloydminster, Alberta
780-871-6530

Kevin B. MacDougall,
Pipeline Manager, Calgary, Alberta
403-298-6234

Pipeline Emergency Phone Numbers
1-780-875-4355
1-403-262-2111