National Energy Board receives an application from Enbridge Pipelines Inc. for contribution of financial support for a pipeline

abarrelfull wrote on 31 Jan 2013 08:00
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18 February 2005

The National Energy Board has received an application from Enbridge Pipelines Inc. (Enbridge) for the implementation of a Non-Routine Adjustment to enable Enbridge to recover in its Canadian pipeline tolls US$10 million per year for five years to support a Mobil Pipe Line Company (Mobil) initiative to reverse the flow of its 508 millimetre (20 inch) pipeline. The reversal of the pipeline would extend transportation service for Canadian crude petroleum supplies in the U.S. Gulf Coast area. The project is known as the "20" Reversal Pipeline Project".

The Board has decided to consider the 20" Reversal Pipeline Project during a hearing it had previously scheduled for an application from Enbridge for the implementation of a Non-Routine Adjustment to enable Enbridge to recover US$10 million per year for five years related to the extension of service on the Spearhead Pipeline which runs from Chicago, Illinois to Cushing, Oklahoma. The hearing previoulsy scheduled to start on 29 March 2005 will now commence on 7 April 2005 in the Board's hearing room in Calgary, Alberta.

Currently, Enbridge Energy Limited Partnership (Enbridge Energy) delivers crude oil to Mustang Pipe Line Partners (Mustang) at Lockport, Illinois for deliveries to connecting carriers at Patoka, Illinois. Mobil's pipeline from Patoka to Corsicana, Texas, which is currently idle, has traditionally moved oil northbound into Patoka from either West Texas or from the Gulf Coast.

The capacity of Mobil's pipeline system is approximately 10 000 to 11 000 cubic metres (65,000 to 70,000 barrels) per day. In response to requests by Canadian producers for increased access to alternative markets, in November 2004, Mobil, along with Enbridge Energy and Mustang, announced an open season for deliveries from Canada into the U.S. Gulf Coast marketplace. Since shipper support of more than 8 000 cubic metres (50,000 barrels) per day of committed volumes from Patoka to the Gulf Coast was secured through the open season, Mobil has stated its intention to make the changes necessary to provide service from Patoka to Corsicana, Beaumont, or Nederland, Texas. The estimated capital cost of reversing Mobil's pipeline is US$22.5 million. The proposed in-service date is the last quarter of 2005.

• National Energy Board receives an application from Enbridge Pipelines Inc. for contribution of financial support for a pipeline reversal in the United States

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