Enbridge to Build Pipeline Extension
biz.yahoo.com
Tuesday July 25, 11:46 am ET
Enbridge to Build $350 Million Pipeline Extension in Illinois
CALGARY, Alberta (AP) -- Enbridge Inc. said Tuesday it will go ahead with construction of a $350 million project to extend the company's crude oil pipeline from the Chicago area south to a distribution hub at Patoka, Ill.
The Calgary energy services company, which operates Canada's biggest oil pipeline, said Tuesday it will build a new pipeline from Flanagan, Ill., just west of Chicago, south to Patoka.
The project is subject to regulatory, permitting and board approvals.
The company said it has the formal support of its shippers and the Canadian Association of Petroleum Producers for the new Southern Access pipeline. The line will consist of 178 miles of 36-inch diameter pipe with an initial capacity to ship 400,000 barrels of oil per day.
The new line is targeted to come into service as early in 2009.
"The Southern Access extension fills in another piece of the new market access plan we have been developing for several years to accommodate growth in oilsands production," said Pat Daniel, president and chief executive of Enbridge.
Daniel said the pipeline will create value for Canadian producers, who will be able to reach more markets at low cost; and for U.S. refiners, who will gain enhanced access to growing volumes of Canadian crude oil.
Enbridge is one of Canada's biggest energy companies, operating the world's largest oil and liquids pipeline system which brings Western Canadian crude to markets in the East and U.S. Midwest. The company also has international operations and a growing involvement in the natural gas transmission and midstream businesses.
Enbridge also owns Canada's largest natural gas distribution company, with operations in Ontario, Quebec and New York State, and is developing a distribution system in New Brunswick. |
