Enbridge to develop US$ 1.6 billion Wood Buffalo pipeline extension for Fort Hills and Suncor

Enbridge Inc. has announced that it has been selected by the Fort Hills Partners as well as Suncor Energy Oil Sands Limited Partnership (Suncor) to develop a new US$ 1.6 billion pipeline to transport crude oil production under long term transportation commitments to Enbridge’s mainline hub at Hardisty, Alberta.

The Wood Buffalo Extension pipeline will transport volumes from the proposed Fort Hills oil sands project as well as growth from Suncor’s existing oil sands operations. The pipeline remains subject to Suncor board approval, as well as customary regulatory approvals.

Enbridge will transport as much as 490 000 bpd of diluted bitumen produced at the Fort Hills Partners' project in Alberta and Suncor's growing oil sands production in the Athabasca region. The pipeline will be an extension of the recently commissioned Wood Buffalo pipeline and will be constructed from Enbridge's Cheecham Terminal to its Battle River Terminal, Hardisty. It is targeted to come into service in the second quarter of 2017. Once the pipeline is completed, the proposed Fort Hills oil sands project will become the eleventh oil sands project to be connected to Enbridge's infrastructure in the Athabasca region.

Strong relationship
"This project builds on our strong relationships with Suncor and Total and establishes an important relationship with Teck Resources," said Stephen J. Wuori, President, Liquids Pipelines and Major Projects. "Securement of this opportunity reflects Enbridge's strong competitive position in the region, leveraging our existing Wood Buffalo line and our major project execution capability, including preferential line pipe procurement and pipe lay contractor agreements."

The project will include a 450 km, 30 in. pipeline from Cheecham to the Battle River Terminal, and associated terminal upgrades. The initial term of the transportation agreement is 25 years, with the Fort Hills Partners and Suncor having the right to extend the agreement for successive five year terms.

Focus on safety
Enbridge is committed to timely and meaningful dialogue with all stakeholders, including shareholders, customers, Aboriginal and Native American communities, governments, regulators, landowners, and employees among others, regarding all of our projects, operations and activities. Enbridge will ensure that the project is conducted in an environmentally responsible manner with a focus on the safety of our employees and the community.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/31102013/enbridge_to_develop_wood_buffalo_extension_pipeline_for_fort_hills_and_suncor/