Wednesday, January 2, 2013

Enbridge Update

Enbridge has released details on its "Light Oil Market Access Program," a $6.2 billion initiative comprised of several individual projects. The Canadian pipeline company says the combined capacity of these projects will accommodate transportation of approximately 400,000 barrels per day (bpd) of additional light oil to refinery markets in Ontario, Quebec, and the U.S. Midwest.

The projects that make up the Program are being developed in response to shifting supply and demand patterns in North America. Specifically, shippers have asked Enbridge to provide increased transportation of crude oil – and in particular, rapidly growing supplies of light crude oil – between growing producing regions and major refinery hubs. Enbridge claims these projects are responsive to fundamental shifts in the crude oil supply in North America.

The Program is part of Enbridge's overall growth strategy, which includes other market access initiatives: Enbridge's Western Access, Gulf Coast Access and Eastern Access programs, which offer flexible transportation options to major crude oil markets and will provide North American consumers access to growing domestic supplies of crude oil while reducing reliance on non-North American volumes.

To fund these and other growth plans, Enbridge, on an enterprise-wide basis, has raised more than $6 billion of capital markets funding to date in 2012, and has expanded the company's general purpose bank credit facilities to more than $12 billion.

The North Dakota System Expansion and Extension component of the plan will include the construction of a 965-kilometre (600-mile) 24-inch diameter line (Sandpiper Project) from Beaver Lodge, North Dakota, to the Superior, Wisconsin, Terminal. The expansion will increase Bakken takeaway capacity by 225,000 bps. The estimated capital cost of this project is approximately $2.5 billion.

Source: Enbridge

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