Enbridge announces major US and Canadian pipeline expansion
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On Wednesday and Thursday, Enbridge Inc., the largest transporter of Canadian oil exports, announced a $3.2 billion series of projects that will move crude oil from Western Canada to Eastern refineries.
First, Enbridge secured commercial support to proceed with additional Eastern Access project.The additional Eastern Access Projects include an 80,000 barrel per day (bpd) expansion of Enbridge's Toledo Pipeline, which connects with the Enbridge mainline at Stockbridge, Michigan and serves refineries at Toledo, Ohio and Detroit, Michigan; and a re-reversal of Enbridge's 240,000 bpd from Westover, Ontario to Montreal, Quebec to serve refineries in Quebec. The Toledo Pipeline expansion is expected to be available for service in early 2013 at a cost of approximately $0.2 billion.
Enbridge Inc. and Enbridge Energy Partners L.P. also announced approximately $0.4 billion of projects to expand capacity of the Lakehead System mainline between its origin near Neche, North Dakota, to its growing terminal hub in Flanagan, Illinois, southwest of Chicago. The current scope of the projects includes expansion of the Alberta Clipper pipeline between the border and Superior, Wisconsin from 450,000 barrels per day (bpd) to 570,000 bpd; and expansion of the Southern Access pipeline Superior and Flanagan, Illinois from 400,000 bpd to 560,000 bpd.
Additionally, Enbridge announced a $0.2 billion expansion of the Canadian portion of the Alberta Clipper pipeline. The current scope of the project will involve the addition of pumping horsepower sufficient to raise the capacity of the Canadian mainline by 120,000 barrels per day.
On Thursday, Enterprise Products Partners L.P. and Enbridge Inc. separately announced that modifications to the Seaway crude oil pipeline allowing it to transport crude oil from Cushing, Oklahoma to the US Gulf Coast have been completed. The pipeline is in the process of being commissioned, and the first flows of crude oil into the line are expected to begin this weekend. The reversal of the 500-mile, 30-inch diameter pipeline, which had been in northbound service since 1995, provides North American producers with the infrastructure needed to access more than 4 million barrels per day of Gulf Coast refinery demand. The reversal will initially provide 150,000 bpd of capacity, which is expected to increase to more than 400,000 bpd in Q1 2013 with additional modifications and increased pumping capabilities.