Enbridge to Connect JACOS Hangingstone Project to its Regional System

abarrelfull wrote on 27 Sep 2013 09:05
Tags: canada enbridge japex n-america pipeline upstream

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Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced that it will construct facilities and provide transportation services to the Japan Canada Oil Sands Limited (JACOS) Hangingstone Oil Sands Project (the Hangingstone Project). JACOS and Nexen Energy ULC, a wholly owned subsidiary of CNOOC Limited, are partners in the project, which is operated by JACOS. Enbridge and JACOS have entered into a long term agreement for transportation services from Cheecham to Edmonton on Enbridge's regional infrastructure. Commercial terms for the incremental facilities to connect Hangingstone to Cheecham have been agreed to but execution remains subject to finalization of the definitive agreements which are imminent.

The newly constructed pipeline will have the capacity to transport 40,000 barrels per day (bpd) of diluted bitumen produced at the Hangingstone Project to the Enbridge terminal in Cheecham, Alberta. First oil from the Hangingstone Project is expected in early 2016, with initial volumes of 18,000 bpd.

"Enbridge is pleased to enter into this agreement with JACOS and Nexen, which provides further confirmation of the sustainable growth in oil sands production," said Stephen J. Wuori, President, Liquids Pipelines and Major Projects. "This project, the tenth to connect into our infrastructure in the Athabasca region, will contribute to our ongoing strategy of connecting new oil sands projects and expanding access for production growth from the region."

Pending regulatory approvals, the execution of the definitive agreements, and stakeholder consultation, Enbridge plans to construct and operate a 50-kilometre (31-mile), 12-inch lateral pipeline to connect the Hangingstone Project to Enbridge's regional system at Cheecham. The scope also includes an optional 8-inch diluent line to transport diluent to the Hangingstone Project. The initial term of the transportation agreement is 20 years, with JACOS and Nexen having the right to extend the agreement in successive five-year terms.

Enbridge is committed to timely and meaningful dialogue with all stakeholders, including shareholders, customers, and employees, Aboriginal and Native American communities, governments, regulators, and landowners, among others, regarding all of our projects, operations and activities. Enbridge will ensure this project is constructed in an environmentally responsible manner with a focus on the safety of our employees and the community.

• Enbridge to Connect JACOS Hangingstone Project to its Regional System

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