Enbridge to Build Wood Buffalo Pipeline
Enbridge has entered into an agreement with Suncor Energy to construct a new, 95-kilometer (59-mile), 30-inch diameter crude oil pipeline, connecting the Enbridge Athabasca Terminal, which is adjacent to Suncor's oil sands plant, to the Cheecham Terminal, which is the origin point of Enbridge's Waupisoo Pipeline. The Waupisoo Pipeline delivers crude oil from several oil sands projects to the Edmonton mainline hub.
The new pipeline will parallel Enbridge's existing Athabasca Pipeline between the Athabasca and Cheecham terminals. Suncor's existing commitments on the Athabasca Pipeline will remain in place. An application has been filed with the Alberta Energy Resources and Conservation Board (ERCB); pending regulatory approval, the new line is expected to be in service by mid 2013.
"Suncor was the anchor shipper that enabled our original entry into oil sands regional pipeline and terminaling infrastructure with the Athabasca Pipeline and terminal in 1999," said Stephen J. Wuori, Executive Vice-President, Liquids Pipelines, Enbridge Inc. "Today, our regional system includes both the Athabasca and Waupisoo pipelines providing dual hub capability to both Edmonton and Hardisty; lateral facilities connecting the Mackay River, Surmont, Long Lake and Christina Lake projects to the system; and over 4.4 million barrels of supporting operational tankage."
Today's announcement brings expansions and extensions of Enbridge's Regional Oil Sands System announced over the last year to a total of approximately $1.6 billion.
"We're building new facilities to meet the needs of the Imperial Oil/Exxon Mobil Kearl project, and we recently added Statoil's Leismer project as a shipper on the system. We are fortunate to have Suncor as a shipper, and to benefit from their continued oil sands growth and need for pipeline and terminaling services, including this latest opportunity," said Mr. Wuori. "As the largest operator of oil sands regional infrastructure, and with our corresponding ability to provide favourable and competitive transportation solutions to producers, we expect to see continued attractive investment opportunities of this sort for some time to come."
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