Insight

Canadian Pipeline Industry Overview

Insight

Canadian Pipeline Industry Overview

Types of Pipelines in Canada

Pipelines are used to transport a broad range of products, but their main purpose is to transport energy in the form of crude oil and natural gas.

Pipelines also transport gases separated from natural gas, such as ethane, butane and propane, or liquid petroleum products derived from crude oil, such as gasoline, diesel, and jet fuel.

Further, some pipelines carry different liquid petroleum products in batches, transporting various products through the same pipeline.

Upstream
Midstream
Downstream

General Characteristics of Pipeline Systems

 UpstreamMidstreamDownstream
Material of ConstructionSteel
Composite
SteelSteel
Plastic
Typical Diameter Range50 to 508 mm
(2 to 20 in)
304 to 1219 mm
(12 to 48 in)
50 to 762 mm
(2 to 30 in)

 

Upstream Pipelines

The upstream pipeline system includes gathering lines that carry liquids and gases from the production wells to central processing and storage facilities. Other upstream pipelines include water disposal lines that transport treated water to disposal wells. Alberta’s in situ oil sands operations such as steam assisted gravity drainage (SAGD) and cyclic steam stimulation (CSS) have unique upstream pipelines that carry steam to injection wells. In oil sands mining operations pipelines transport tailings (mixtures of sand, clay and water) from the extraction plant to the tailings pond.

Midstream Pipelines

The midstream pipeline system is also referred to as the transmission pipeline system, which carries products over great distances across country. Transmission pipelines are located in designated right-of-ways (ROW), with each ROW often containing multiple pipelines operated by different companies and carrying different products. The Canadian Energy Regulator maintains an interactive map of all transmission pipelines in Canada. The map also indicates all reportable incidents, such as spills that have occurred on these pipelines.

The midstream pipeline system also includes large-scale underground storage facilities using either depleted natural gas reservoirs or storage caverns. In Canada, storage caverns are built using solution mining techniques to “wash” a cavern in bedded salt formations. In other parts of the world storage caverns are washed in salt domes or mined in granitic bedrock.

Downstream Pipelines

The downstream pipeline system includes distribution lines that carry natural gas at low pressure to industrial, commercial, and residential customers.

Pipeline Regulations and Standards

In Canada, pipelines that cross provincial or federal borders are regulated by the Canadian Energy Regulator. Pipelines operating within provincial borders are regulated by provincial entities such as the Alberta Energy Regulator (AER) and British Columbia Energy Regulator (BCER).

In the United States this role is filled at the federal level by the Pipelines and Hazardous Materials Safety Administration (PHMSA).

Pipelines carrying hydrocarbon products including natural gas, crude oil and derivative products are designed and operated in Canada in accordance with the national standard CSA Z662 Oil and Gas Pipeline Systems.

Underground storage facilities that are integral components of the transmission pipeline network are designed and operated according to CSA Z341 Storage of Hydrocarbons in Underground Formations.

Traditionally, these standards did not include the transportation of gaseous hydrogen, but recent updates to the standards have addressed this issue.

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