Enbridge to build Sunrise oilsands project pipeline

Enbridge Inc. has announced that it has entered into an agreement to provide pipeline and terminaling services to the proposed Husky operated Sunrise oilsands project. Enbridge will construct a new originating terminal at the Sunrise Project, a 112 km (66 mile), 24 in. diameter pipeline from Hartley to Enbridge's Cheecham Terminal and additional tankage at Cheecham. The estimated cost of the project is approximately US$ 475 million with an initial capacity of 90,000 bpd, expandable to 270,000 bpd. The facilities are expected to be in service in the latter half of 2013.

"We are very pleased to add the Sunrise Project to our roster of oilsands projects committed to Enbridge's regional pipeline and terminal system. This will bring the number of oilsands projects connected to our system to eight by 2013," said Patrick D. Daniel, President and Chief Executive Officer, Enbridge Inc.

Mr. Daniel added, "This new project brings expansions and extensions of Enbridge's regional oilsands system announced in the last year to a total of approximately US$ 2.3 billion. This string of investments reflects our strategy to capitalise on regional pipeline and terminaling opportunities and further solidifies our competitive position as the largest pipeline operator in this oilsands region."

Under the terms of the agreement, Enbridge will also provide pipeline transportation services on its existing regional oilsands system for up to 90,000 bpd of diluted bitumen produced from Phase 1 of the Sunrise Project. All of these arrangements remain subject to the final sanctioning of the Sunrise Project. The initial term of the pipeline and terminaling agreement is 20 years with Husky having the right to extend the agreement in successive five year terms for a total contract life of 45 years. Enbridge and Husky will share equally in net revenues from third party volumes transported in the line.

Read the article online at: https://www.worldpipelines.com/business-news/09092010/enbridge_to_build_sunrise_oilsands_project_pipeline/