Enbridge to expand access to eastern markets with new pipeline project

Enbridge Inc. and Enbridge Energy Partners, L.P. have announced two projects that will provide increased access to refineries in the U.S. upper midwest and in Ontario, Canada for light crude oil produced in western Canada and the USA. The project involves the expansion of EEP's Line 5 light crude line between Superior, Wisconsin and Sarnia, Ontario by 50,000 barrels per day, at a cost of approximately US$ 100 million. Complementing the Line 5 expansion, Enbridge plans on reversing a portion of Line 9 in western Ontario to permit crude oil movements eastbound from Sarnia as far as Westover, Ontario, at a cost of approximately US$ 20 million.

The expansion of Line 5 and reversal of Line 9 between Sarnia and Westover can be economically achieved with upgrades or modifications of facilities and does not require installation of new pipeline.

The project will enable growing light crude production from the Bakken shale and from Alberta to meet refinery needs in Michigan, Ohio and Ontario. The project provides another much needed transportation outlet for light crude, mitigating the current discounting of supplies in this basin while also providing more favourable supply costs to refiners currently dependent on crudes priced off of the Atlantic basin.

"We are pleased to be able to provide this high value solution to our shippers," said Stephen J. Wuori, President, Liquids Pipelines, Enbridge Inc. "With a Brent-to-WTI differential running in excess of $20 per barrel, compared with the historical parity relationship, there is significant value to be captured by increasing the pipeline capacity to move western Canadian and Bakken light crude supply to eastern refiners.”

Read the article online at: https://www.worldpipelines.com/business-news/05102011/enbridge_to_expand_access_to_eastern_markets_with_new_pipeline_project/