Enbridge to Build $1.3 Billion Woodland Pipeline Extension

abarrelfullabarrelfull wrote on 29 Jul 2013 06:12
Tags: canada enbridge n-america pipeline

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Enbridge Inc. (TSX:ENB) (NYSE:ENB) announced today that it is proceeding with the construction of the Woodland Pipeline Extension Project. The project will extend the Woodland Pipeline south from Enbridge's Cheecham Terminal to its Edmonton Terminal to connect up with refineries and export pipelines in the Edmonton area. The project has an estimated cost of $1.3 billion, of which 50% is Enbridge's capital contribution, and a planned in service date in the third quarter of 2015.

The Woodland Pipeline Extension is being constructed to serve the Imperial Oil and ExxonMobil Kearl oil sands project and its recently announced expansion. Enbridge brought into service the Woodland Pipeline between the Kearl oil sands project and the Enbridge Cheecham terminal in the fall of 2012.

The 385-kilometre (228-mile), 36-inch (914-mm) Woodland Pipeline Extension will have an initial capacity of 400,000 barrels per day (bpd), with the ability to be expanded to approximately 800,000 bpd dependent upon crude viscosity. The majority of the proposed route of the Woodland Pipeline Extension follows existing Enbridge right-of-way and will be in a shared corridor with the Waupisoo Pipeline. The project will include new pump stations at the existing Roundhill Station location and at the Cheecham Terminal. Enbridge received regulatory approval for the project from the Alberta Energy Regulator (AER) in August 2012.

"Enbridge is pleased to further its investment in the Woodland pipeline system to serve the production growth from the Kearl oil sands project," said Stephen J. Wuori, President, Liquids Pipelines and Major Projects. "Extension of the Woodland Pipeline will bring additional crude oil transportation capacity into the Edmonton area, enabling us to accommodate forecasted regional oil sands production growth from the Kearl project and other oil sands projects targeted for delivery into the Edmonton hub.

"The Woodland Pipeline Extension Project is an example of how Enbridge is able to utilize existing infrastructure and rights-of-way wherever possible to minimize our footprint and our impact to communities, stakeholders and the environment," added Mr. Wuori. "We place the highest priority on the safety and operational reliability of our energy infrastructure at all stages of design, construction and operations."

With the Woodland Pipeline Extension Project, Enbridge is constructing infrastructure projects valued at more than $4.3 billion to service the increasing requirements of the Alberta oil sands producers. These projects are forecasted to come into service between 2013 and 2015.

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