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Strategy
The Saskatchewan System operates its pipelines and supporting assets with the objective of providing reliable, cost effective transportation solutions and generating strong cashflows. The Saskatchewan System is focused on meeting the increased crude oil production and growing demand for pipeline capacity in the areas served by its systems through expansion and development initiatives, specifically the Westspur expansion. This growth is expected to increase distributable cash flow from this segment in the near term. Transportation by pipeline is generally more cost effective than other alternatives and as a result, the Saskatchewan System is currently expanding its capacity by approximately 20% to meet the growing demand for its services.
Westspur Expansion
In November 2007, construction began on the Westspur expansion, which will increase capacity on the Westspur System between Midale and Steelman by approximately 20,000 bpd and between Alida and Cromer by approximately 77,000 bpd. This expansion is expected to be in service by the second quarter of 2008 at a total cost of approximately $30.5 million.