As 2013 begins, many producers are ramping up production and many projects this month are targeting takeaway capacity to combat future backlogs. Plans include new processing plants, pipeline expansions and a proposed transmission project.

According to a recent report released by the U.S. Energy Information Administration, worldwide oil supply is expected to increase by 1 million barrels (bbl.) per day in 2013 and by 1.7 million bbl. per day in 2014, with much of the growth, in non- Organization of Petroleum Exporting Countries’ supply, coming from North America. Both TransCanada Corp. and Enbridge Inc. are attempting to get a head start on this increased production with two recently announced projects.

In mid-January, TransCanada announced that it had been selected by Progress Energy Canada Ltd. and Progress Energy Resources Corp. to design, build, own and operate the proposed $5 billion Prince Rupert Gas Transmission project. According to TransCanada, the proposed pipeline will transport natural gas from the North Montney region near Fort St. John, British Columbia, to the recently announced Pacific Northwest liquefied natural gas export facility in Port Edward, British Columbia, and is expected to have an initial capacity of 2 billion cubic feet per day. The project, which is subject to regulatory and corporate approvals, has an estimated in-service date of fourth-quarter 2018.

At the same time and just a month after announcing its Hardisty Mainline expansion, which runs from Edmonton, Alberta, to Hardisty, Alberta, Enbridge announced that it would undertake an additional $400 million expansion on its Canadian mainline system.

According to Enbridge, the expansion will run from Hardisty to the U.S. border and is expected to add an additional 230,000 bbl. per day of capacity. The mainline is held by Enbridge Pipelines Inc. and is expected to be in-service by 2015.

Elsewhere, Targa Resources Partners LP acquired additional property on the Houston Ship Channel with plans of expanding its petroleum logistics clean fuel business and adding to the company’s propane/butane export capabilities. According to the partnership, the Targa Patriot Terminal, which will be located just two miles from Targa’s Galena Park Marine Terminal, has an existing dock, acreage for expansion build-out, an existing rail siding and nearby access to the Colonial/Explorer refined products pipeline interconnect hub. The international export project will come on-line in two phases in third-quarter 2013 and third-quarter 2014.

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