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Enbridge Says Ozark Pipe to Meet 52% of July Shipping Demand

By Margot Habiby

June 29 (Bloomberg) -- Enbridge Inc., Canada’s largest pipeline company, said its Ozark pipeline in the U.S. will haul about 52 percent of the crude oil requested by oil producers, traders and refiners next month.

Shippers asked to move almost 416,000 barrels of oil a day on the Ozark pipeline, which will have the capacity to transport 215,000 barrels a day in July, Larry Springer, an Enbridge spokesman, said in an e-mail today.

Ozark, which transports heavy and low-sulfur oils between Cushing, Oklahoma, and Wood River, Illinois, is part of Enbridge’s Mid-Continent System, which includes more than 480 miles of oil pipelines and 12.8 million barrels of oil-storage capacity, according to information on the company’s Web site. Heavy describes the oil’s density.

Shippers often inflate their nominations to make sure they get the space they need to transport their oil, and the company must determine how many of the month’s requests it can meet.

Enbridge did not apportion space for July on its Spearhead pipeline, which mostly transports heavy Canadian oil into the U.S. mid-continent.

Shippers asked to move more than 188,000 barrels of oil a day on the pipeline, which will have the capacity to transport that amount next month, Springer said.

Spearhead spans 657 miles (1,058 kilometers) from Chicago to Cushing, according to the Web site.

To contact the reporter on this story: Margot Habiby in Dallas at mhabiby@bloomberg.net.

Last Updated: June 29, 2009 13:54 EDT

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