Sunday, November 4, 2012

Enbridge Plans Eastward Pipeline Expansion

During the conference call following its third quarter earnings announcement, Enbridge Energy Parners outlined plans to expand its pipeline network to better serve the Eastern North American markets that traditionally rely on foreign imports. A major part of this initiative is the company's proposed Sandpiper pipeline, which would run approximately 500 miles from the Beaver Lodge area in North Dakota (south of Tioga) to the main Enbridge terminal in Superior, Wisconsin. The Sandpiper, which the company announced in early October, would have a capacity of approximately 225,000 barrels per day and is expected to be operational no sooner than 2015. Enbridge also plans to expand its pipeline that currently runs between Superior and Sarnia, Ontario and to increase the capacity of pipelines now serving Chicago, Toledo, Ohio and Montreal.

Company officials also updated other Bakken projects that are expected to be brought into service in 2013. The company's current Bakken pipeline expansion work is expected to introduce an incremental 120,000 barrels per day of takeaway capacity and the Bakken Access program will offer 100,000 barrels per day of gathering and truck loading and unloading facilities. In addition, officials said the Berthold Rail facility will provide 80,000 barrels per day of takeaway rail capacity to move these gathered volumes to market. Phase I of the Berthold Rail project entered service during the later part of the third quarter and currently provides 10,000 barrels per day of takeaway capacity. Enbridge officials expect the remaining capacity to come into service during the first quarter of 2013 enabling the company to accommodate large Unitrain movements at that time. Read more

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