Source: Enbridge Inc.
Enbridge Inc. (TSX:ENB) (NYSE:ENB) announced that its wholly owned subsidiary, Enbridge Pipelines Inc. (EPI), will expand the tankage of its mainline terminal at Edmonton, Alberta by one million barrels at an estimated cost of approximately $260 million, subject to regulatory approval. The expansion is targeted for completion by late 2012.
The expansion is required to accommodate growing oil sands production receipts both from Enbridge's Waupisoo Pipeline and other non-Enbridge pipelines. The expansion will be undertaken under the terms of the 2010 Incentive Tolling Settlement between EPI and the Canadian Association of Petroleum Producers (CAPP). Enbridge has received a letter of support from CAPP to undertake the project.
The expansion, which will be conducted over two phases, will consist of the construction of four tanks in the North Terminal and the installation of short segment of pipeline and related infrastructure. Subject to regulatory approval, construction will commence early in 2011. Phase I is expected to be in service in the third quarter of 2012 and Phase II in the fourth quarter of 2012.
"Our strong regional presence, combined with our mainline system, gives Enbridge an unparalleled ability to expand and extend our energy delivery networks to reach new markets for our customers throughout North America," says Stephen J. Wuori, Executive Vice President, Liquids Pipelines, Enbridge Inc. "These additional tanks will help ensure the necessary infrastructure is in place to accommodate increased oil volumes anticipated in 2012 and will provide improved netbacks for our customers."
The proposed tanks will be built with a number of safety and environmental protection features and will be incorporated into Enbridge's existing safety and emergency response plans and procedures for the Terminal. Enbridge will take steps to minimize potential impacts associated with noise, traffic and dust during construction. The work will be conducted within the existing Enbridge Terminal property, located in an industrial area in Strathcona County.