Enbridge plans C$200 million pipeline for new oil sands project

Thu Mar 21, 2013 1:17pm EDT

Related Topics

* New line to connect oil sands project to regional network

* 16,000 bpd pipeline complete by 2015

* Enbridge shares down 0.2 pct

CALGARY, Alberta, March 21 (Reuters) - Enbridge Inc , Canada's No. 2 pipeline company, said on Thursday it will spend C$200 million ($195 million) on a new pipeline to connect Athabasca Oil Corp's planned Hangingstone oil sands project in northern Alberta to its regional pipeline network.

The new 50-kilometer (31-mile) line will take up to 16,000 barrels per day of crude by 2015 from the Hangingstone project to Enbridge's Cheecham pipeline terminal near Fort McMurray, Alberta.

A second phase could see the line expanded to handle a further 60,000 bpd should Athabasca choose to increase the size of its project.

Enbridge said Hangingstone will be the ninth oil sands project served by its regional network, which takes crude to the company's Edmonton, Alberta, terminal where it can be loaded on to its mainline pipeline system for shipment to refineries in Canada and the U.S. Midwest.

The company will apply for regulatory approval to begin construction in May.

Enbridge shares were down 9 Canadian cents at C$46.98 on the Toronto Stock Exchange on Thursday afternoon.

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