Calgary-based Enbridge Inc. is making a series of investments in the construction of pipelines and terminals that will increase the number of oilsands projects connected to its regional distribution system.
Calgary-based Enbridge Inc. is making a series of investments in the construction of pipelines and terminals that will increase the number of oilsands projects connected to its regional distribution system.
“We are very pleased to add the Sunrise Project to our roster of oilsands projects committed to Enbridge’s regional pipeline and terminal system,” said Enbridge president and chief executive officer Patrick D. Daniel.
“This will bring the number of oilsands projects connected to our system to eight by 2013.”
Last week, Enbridge entered into an agreement with Husky Energy to provide pipeline and terminal services to the proposed Sunrise Oil Sands Project.
Enbridge will construct a new originating terminal at the Sunrise Project, a 112-kilometre, 24-inch diameter pipeline from Hartley to Enbridge’s Cheecham Terminal and additional storage tanks at Cheecham.
Under the terms of the agreement, Enbridge will provide pipeline transportation services on its existing Regional Oil Sands System for up to 90,000 barrels per day of diluted bitumen produced from Phase 1 of the Sunrise Project.
The estimated cost of the project, which is expandable to 270,000 bpd, is about $475 million.
The facilities are expected to be in service in the latter half of 2013.
Earlier this month, Enbridge announced it will undertake an expansion of its Athabasca Pipeline to transport oil from the Christina Lake oilsands project, which is operated by Cenovus.
The $185 million expansion is expected to be in service in the third quarter of 2013 and increase the capacity of the Athabasca Pipeline to 430,000 bpd.
The Athabasca Pipeline is a 380-kilometre system that transports crude oil from various oilsands projects to the mainline hub at Hardisty, Alberta.
It can be expanded to as much as 570,000 bpd, which could be available in the third quarter of 2014.
Late last month, Enbridge entered into an agreement with Suncor Energy to construct a new, 95-kilometre, 30-inch diameter crude oil pipeline to connect the Athabasca Terminal to the Cheecham Terminal, which is the origin point of Enbridge’s Waupisoo Pipeline.
The Wood Buffalo pipeline will parallel Enbridge’s existing Athabasca Pipeline between the Athabasca and Cheecham terminals.
An application has been filed with the Alberta Energy Resources and Conservation Board and the new line is expected to be in service by mid 2013.
Enbridge is making plans to invest more than $400 million in the expansion of the Waupisoo Pipeline, which delivers crude oil from several oilsands projects to the Edmonton mainline hub.
Enbridge also decided in August to move forward with a US$370 million project to expand pipeline capacity to transport crude oil from the Bakken and Three Forks formations located in Montana, North Dakota, Manitoba and Saskatchewan.
The expansion program will originate at Beaver Lodge Station near Tioga, North Dakota.
It will follow existing rights of way to terminate at and deliver to the Enbridge mainline terminal at Cromer, Manitoba.
Total capacity into Cromer following the current expansion will be 230,000 bpd.
The total cost of Canadian projects is about Cdn $190 million
Since mid-2009, Enbridge has announced approximately $1.8 billion in projects to expand and extend its regional oilsands system.
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