Enbridge plans C$ 3.2 billion pipeline expansion

Canadian company Enbridge has outlined plans for a C$ 3.2 billion pipeline expansion programme designed to increase the flow of oil from Canada to the US.

The company stated that it planned to spend C$ 2.6 billion on flow direction reversal work on a pipeline running between Sarnia, Ontario and Montreal in order to facilitate the transport of Alberta oil sands and Bakken Shale oil to additional refineries.

Enbridge also has plans to spend C$ 600 million on expanding its main pipeline in Canada and the US, which currently ferries more than 2 million bpd, in order to increase supply to the Chicago area.

Enbridge’s president, Al Monaco, said, “The timing is driven by what is really a pretty significant change and a very fast change in the supply and demand fundamentals on this continent … Basically, you’ve got a massive increase in oil sands and shale volumes, which is totally different from just two years ago when people thought we were in decline. A lot that increase is for light oil.”

Upgrading existing infrastructure is likely a sound move by the company as it avoids many of the regulatory, environmental and financial difficulties involved with the construction of a new pipeline. Monaco cited the examples of the Keystone XL and Northern Gateway pipelines as having been held up by complications involved in acquiring permission to build in different territories.

Edited from various sources by David Bizley

Read the article online at: https://www.worldpipelines.com/business-news/17052012/enbridge_plans_cd3billion_pipleine_expansion_programme/