CALGARY, Alberta, Jan 29 (Reuters) - Enbridge Income Fund Holdings said on Wednesday it will build a C$25 million ($22.42 million) crude oil pipeline connection to the Cromer, Manitoba, rail terminal owned by Tundra Energy Marketing Ltd.
The fund, controlled by Canada’s largest pipeline company Enbridge Inc, expects the pipeline between the Enbridge system and rail terminal to be in service by the fourth quarter of 2014.
It will be able to deliver segregated batches of light crude to Tundra’s 30,000 barrel per day terminal, served by CN Railway .
Pipeline connections are key for Canada’s new crude-by-rail terminals, which otherwise rely on slower and less efficient truck deliveries of crude.
Enbridge Income Fund has an option to purchase 50 percent of Tundra’s rail terminal, which has potential to expand to handle more than 60,000 bpd, at a later date subject to terms and conditions.