Update On Explorer Pipeline Project To Carry Diluent From The Gulf Coast To Midwest On Track, On Schedule, Apparently Within Budget

This is really a great story, one of the reasons I love to blog.

A couple of years ago I would have had no idea what dilbit was or what "diluent" was. But back in September, 2012, about a year ago, I wrote a pretty long post on "diluent" with sources from Reuters and RBN Energy. That post is now "diluent central," where I update data points on this subject.

I had forgotten about some aspects of the diluent story but knew the big story. Newbies should read the post at the link before continuing.

At that post, I mentioned one of the two major pipelines that would be shipping diluent from the Gulf Coast back up to Canada: the Explorer, from Houston to Chicago. Originally, this pipeline carried gasoline/diesel fuel from the Gulf Coast to the Midwest. Now, it will be carrying diluent back to landlocked refiners taking in more Canadian crude oil.

Earlier this year, April 3, 2013, there was an article in Pipeline and Gas Journal, reporting that Explorer Pipeline's board of directors had approved funding for the first phase of what they called the Manhattan Extension Project.

The project will include 18 miles of pipeline from Explorer’s existing 24-inch mainline north of Wood River, IL to Manhattan, IL, the origin point for the Southern Lights Pipeline. Explorer expects the project to be operational second quarter 2015.

Today, the company released this press release:

Explorer Pipeline announced today its board of directors has approved full funding for the second and final phase of the Manhattan Diluent Extension Project. Explorer’s board approved phase one of the project earlier this year.

“The board’s action earlier this year allowed us to maintain the timing for the second quarter of 2015 in-service date, and this funding approval solidifies Explorer’s commitment to our shippers and our diluent growth strategy,” said Dave Ysebaert, CEO of Explorer. “This connection will provide initially up to 250,000 barrels per day of capacity into Southern Lights allowing Explorer to meet the growing demand for diluent as the capacity of Southern Lights increases.”