Mistral’s US ethane shipped to Canada, to grow atleast three folds in next two years

12-May-14

Mistral Energy has started shipping purity ethane to Canada from the US on its Vantage Pipeline and expects to increase levels to 60,000 bpd over the next two years, as per a company spokesman in Platts. The average volume in the "initial months" of operation is expected at 10,000-20,000 bpd. 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," as per spokesman Salahor. 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. Calgary-based Mistral has two shipping contracts on the Vantage Pipeline, both with Nova Chemicals, totaling 33,000 bpd of firm service for the next two years. Since enquiries have been raised about capacity, Vantage expects there could be other parties taking out capacity on the pipeline in the future. Based on the capacity of existing and planned petrochemical plants in Alberta, Vantage expects there should be a notional demand of 60,000 bpd 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.