Enbridge plans C$1.8 billion link between Alberta pipeline hubs
CALGARY, Alberta (Reuters) - Enbridge Inc (ENB.TO) said on Thursday it will build a C$1.8 billion ($1.8 billion) pipeline to ship 570,000 barrels per day of oil between Alberta's two main storage hubs at Edmonton and Hardisty to accommodate rising output from the oil sands.
The company plans a 179-km (111-mile), 36-inch (91-cm) line that will carry crude from Edmonton to Hardisty, the starting point for Enbridge's Alberta Clipper pipeline, which takes 796,000 bpd of oil to Superior, Wisconsin, as well as TransCanada Corp's (TRP.TO) 590,000-bpd Keystone pipeline and its planned Keystone XL line.
Edmonton is the terminus for a number of pipelines serving oil sands projects in Northern Alberta, where production is expected nearly to double to 3.1 million bpd by 2020.
Enbridge said it expects to file for regulatory approval of the project by the end of the year. If approved, construction of the new line could begin in early 2014, with service starting by the middle of 2015.
Along with the new pipeline, which will be expandable to 800,000 bpd, Enbridge also plans new storage tanks and other facilities at both hubs.
Enbridge shares fell 10 Canadian cents to C$38.70 on the Toronto Stock Exchange on Thursday.
($1 = 0.9981 Canadian dollars)