New Crude Oil Pipeline Planned in Canada

Enbridges $370-million project will link two terminals handling oil from sand

Pipeline operator Enbridge Inc. is planning to build a $370-million pipeline to transport crude oil from a terminal in Alberta’s oil sands region and connect with another pipeline 59 miles away. An application for the project has been filed with the Alberta Energy Resources and Conservation Board, and construction is expected to begin soon to start service by the middle of 2013.

"Suncor was the anchor shipper that enabled our original entry into oil sands regional pipeline and terminaling infrastructure with the Athabasca Pipeline and terminal in 1999," stated Enbridge Inc. EVP-Liquids Stephen J. Wuori. "Today, our regional system includes both the Athabasca and Waupisoo pipelines providing dual-hub capability to both Edmonton and Hardisty; lateral facilities connecting the Mackay River, Surmont, Long Lake and Christina Lake projects to the system; and over 4.4 million barrels of supporting operational tankage."

The new, 30-in. diameter line will run parallel to an existing Enbridge pipeline connecting the Enbridge Athabasca Terminal, adjacent to Suncor's oil sands plant, to the Cheecham Terminal, which is the origin point of Enbridge's Waupisoo Pipeline. The Waupisoo Pipeline delivers crude oil from several oil sands projects to the Edmonton mainline hub.

Calgary-based Enbridge operates the world's longest transportation system for crude oil and liquids. It’s also involved natural gas transmission and midstream businesses. The newest deal brings expansions and extensions of Enbridge's regional oil sands system over the last year to a total of about $1.6 billion.

"As the largest operator of oil-sands regional infrastructure, and with our corresponding ability to provide favorable and competitive transportation solutions to producers, we expect to see continued attractive investment opportunities of this sort for some time to come," Wuori added.

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