Enbridge Announces $1.2 Billion Twinning of Southern Section of Athabasca Pipeline

abarrelfullabarrelfull wrote on 13 Sep 2011 06:11
Tags: canada enbridge n-america pipeline

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Enbridge Inc. (TSX:ENB) (NYSE:ENB) announced today that it will twin the southern section of its Athabasca Pipeline from Kirby Lake, Alberta to the Hardisty, Alberta crude oil hub at an estimated cost of approximately $1.2 billion. The twin line will initially add approximately 450,000 barrels per day (bpd) of capacity between these points, with low cost expansion potential to 800,000 bpd. The line is expected to be capable of accepting initial volumes by early 2015, with its full initial capacity available by 2016.

The new line will include approximately 345 kilometers (210 miles) of 36-inch pipeline largely within the existing Athabasca Pipeline right-of-way. The new line is designed to accommodate the need for additional capacity to serve Kirby area oil sands growth, beyond the expansion of the existing 30-inch pipeline to its maximum capacity of 570,000 bpd which was announced in the fall of 2010. Transferring existing Kirby area volumes to the new 36-inch line from the existing 30-inch line will also free up the latter to accommodate additional long-haul volumes originating from the Cheecham or Athabasca terminals further upstream on the Athabasca System.

"Twinning our Athabasca system south of Kirby represents a highly efficient solution to the needs we are seeing for additional long-haul and short-haul capacity into Hardisty, leveraging off the advantages of our existing asset base and right-of-way," said Stephen J. Wuori, President, Liquids Pipelines. "While anchored by the needs of our current connected projects, it is readily expandable to accommodate new projects which are also expected to require pipeline capacity beginning mid-decade. This project is a significant part of our overall plan to provide capacity for rapidly growing production from the Kirby area as well as from growth projects further north in the Athabasca region."

Mr. Wuori noted that the project is expected to deliver significant local benefits.

"Based on our recent construction experience, we expect to create about 545 person years of employment in building the twinning project," said Mr. Wuori. "As we move through construction, those crews will be purchasing goods and services, as well as housing and food from local retailers. Once in operation, the pipeline will generate significant tax revenues for communities along the right-of-way."

With the twinning project, Enbridge will have a total of $3.6 billion of planned expansions of or additions to its Regional Oil Sands System which will go into service between 2011 to 2015, as well as a significant portfolio of additional projects which are under development to meet oil sands growth.

Enbridge's Regional Oil Sands System At-a-Glance:

Enbridge is the leading pipeline operator in the Fort McMurray to Edmonton/Hardisty corridor and well positioned to tie-in new oil sand developments to mainline pipelines and increase capacity for current customers. Enbridge's Regional Oil Sands Infrastructure includes the Athabasca and Waupisoo pipeline systems, connecting six producing oil sands projects. A map is available at www.enbridge.com

Athabasca Pipeline:
* 540-kilometre (335-mile) pipeline in operation since March 1999 Annual capacity of up to 570,000 barrels per day of crude oil (depending on crude viscosity) from the Athabasca and Cold Lake regions of Alberta, south to Hardisty, Alberta Waupisoo Pipeline:

  • kilometre (235-mile) pipeline system in operation since June 2008 — Annual capacity of up to 600,000 bpd of crude oil (depending on crude viscosity) from Enbridge's Cheecham Terminal to Edmonton Tankage:
  • Largest operator of contract storage facilities at the Hardisty hub with the 3.1 million barrel Hardisty Caverns storage facility, plus the 7.5 million barrel Hardisty Contract Terminal surface storage facility — More than 4.4 million barrels of operational storage associated with the Waupisoo and Athabasca pipelines and laterals

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