Enbridge to expand Canada, US oil pipeline system
By EDWARD WELSCH
CALGARY, Alberta -- Enbridge said Wednesday it's moving ahead with C$3.2 billion ($3.2 billion) in pipeline expansions, mostly to send more crude oil from Canada and North Dakota to the Midwest and eastern Canada.
The expansions include a full reversal of the Line 9 pipeline from Sarnia, Ontario to Montreal, where crude oil produced in North America will replace imports.
The expansions are another step in the reshaping of North America's energy infrastructure to accommodate rising crude oil production in Canada and the western US.
Pipeline companies are building or expanding pipelines south, west and east from the center of the continent to the coasts. The cheaper North American production is starting to displace foreign oil imports, which are more expensive than US benchmark prices.
"Access to Canadian and US Bakken production will help level the playing field for these refineries, protecting their long term viability and safeguarding jobs," he added.
The Calgary pipeline company said C$2.6 billion of the expansions will go to expanding the eastward capacity of the Mainline, the largest pipeline system transporting Canadian crude oil to the US.
The capacity of Spearhead North pipeline between Flanagan, Ill., and Griffith, Ind. will increase by 105,000 bpd and the capacity of the Line 6B pipeline between Indiana and Michigan will expand by 260,000 bpd.
Enbridge also said it will spend C$400 million to expand the Southern Access pipeline between Superior, Wis. and Flanagan, Ill., from 400,000 bpd to 560,000 bpd.
And C$200 million is to expand the Alberta Clipper pipeline between Hardisty, Alberta and Superior, Wis., which will increase by 120,000 bpd to 570,000 bpd.
The expansions are expected to be completed in 2014.
The reversal of the Line 9 pipeline to Montreal will require approval from the National Energy Board, Canada's energy regulator, which is currently reviewing the first phase of the reversal from Sarnia to Westover, Ontario.
Dow Jones Newswires
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