Inter Pipeline Ltd. has entered into a binding agreement with AOC Hangingstone Partnership, a wholly owned subsidiary of Athabasca Oil Corporation (AOC), to provide diluent transportation services for AOC's multi-phase Hangingstone oil sands project. Under the terms of a 25-year ship-or-pay agreement, Inter Pipeline will provide AOC with an initial 4,500 barrels per day of committed capacity on its Polaris pipeline in support of the first production phase of the Hangingstone project.

AOC, through the Hangingstone Partnership, expects to develop the Hangingstone project in several phases over the coming years. Inter Pipeline holds the exclusive right to provide diluent transportation for future phases of the project. Should all three planned phases be developed, Inter Pipeline estimates that the Hangingstone project may require up to 30,000 barrels per day of diluent.

Tags: Inter Pipeline Ltd.