Enbridge Wins Contracts to Proceed With Gulf Coast Pipeline
Enbridge Inc. (ENB), Canada’s largest oil- pipeline company, has won enough support from shippers to proceed with a $1.9 billion project to bring more Canadian and North Dakota crude to U.S. refineries.
The Gulf Coast Access project would be a new pipeline from their terminal in Flanagan, Illinois, to Cushing, Oklahoma, in service by mid-2014, the Calgary-based company said in a statement today. The pipeline will connect with the Seaway system to carry oil to Gulf Coast facilities.
Enbridge proposed the pipeline system to handle increased production from Canada’s oil sands as well as the Bakken region in North Dakota and Montana. The line will follow rights of way for Enbridge’s existing Spearhead system.
“The Gulf Coast Access project offers near-term solutions through the cost-effective and efficient use of existing facilities and rights of way,” Stephen Wuori, Enbridge’s president of liquids pipelines, said in the statement.
The Seaway line, which is being reversed, will operate with a capacity of 150,000 barrels a day by the second quarter of 2012, Enbridge and Enterprise Products Partners LP (EPD) said in a separate statement today. Pump modifications expected by early 2013 will boost that to 400,000 barrels.
To contact the reporters on this story: Jeremy van Loon in Calgary at jvanloon@bloomberg.net
To contact the editor responsible for this story: Tina Davis at tinadavis@bloomberg.net
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