Enbridge to undertake Cdn $1.8 billion Edmonton to Hardisty mainline pipeline expansion

Enbridge Inc. has announced that its wholly owned subsidiary, Enbridge Pipelines Inc., has reached agreement with shippers on the terms of a Cdn$ 1.8 billion expansion of its mainline system between Edmonton and Hardisty, Alberta. The expansion will include a new 36 in. line, plus additional tankage and terminal facilities at Edmonton and Hardisty. Initial capacity of the new line will be 570 000 bpd with expansion potential to 800 000 bpd; and a target in service date in mid 2015.

The new line and facilities will be included within Enbridge Pipelines Inc.'s Mainline Competitive Toll Settlement (CTS) agreement with the addition of a Cdn$ 0.25 surcharge on all Edmonton to Hardisty shipments. The agreement also provides for an adjustment to receipt tankage fees if the utilisation of the new facilities falls below the planned level. Construction of the facilities will require regulatory approval.

“The Edmonton to Hardisty expansion programme will align the capability of our system with our shippers' plans for how their growth in crude oil volumes will be divided between volumes entering our system at the Edmonton and Hardisty crude oil hubs,” said Stephen J. Wuori, President, Liquids Pipelines, Enbridge Inc. “The agreement with shippers on terms for the expansion continues our collaborative relationship, ensuring that we provide the facilities and services they need to maximise the value of their crude oil.”

Enbridge anticipates filing an application with the National Energy Board by the end of the year. Subject to the receipt of required regulatory approvals, the company expects to begin construction activities as early as Q1, 2014. The route of the proposed 179 km pipeline between Edmonton and Hardisty is expected to generally follow the same route as Enbridge's existing Line 4 Pipeline, which will minimise impacts on stakeholders and the environment.

“As a company with long-standing operations in Alberta, we're committed to ensuring we build and operate our facilities safely, reliably and with respect for local communities and the environment,” said Mr. Wuori. “If approved, the Edmonton to Hardisty expansion project is expected to generate tax benefits and create economic opportunities in local communities where we will strive to use qualified local contractors and businesses as much as possible. Over coming months, Enbridge representatives will be consulting with stakeholders and Aboriginal communities along the right-of-way to seek their input and to provide updates on the project.”

Adapted from press release by Cecilia Rehn.

Read the article online at: https://www.worldpipelines.com/business-news/26112012/enbridge_to_undertake_cdn_$1-8_billion_edmonton_to_hardisty_mainline_pipeline_expansion/