Enbridge seeks regulatory nod for line

Enbridge is rolling out the latest phase of its grand plan to remain the leading Canadian oil and liquids pipeline, filing with Canada’s National Energy Board for approval of its Southern Lights project from Chicago to Cromer, Manitoba.

The US$1.3 billion facility has an in-service date of 2010 to carry 180,000 barrels per day of diluent, which is blended with oil sands bitumen to improve its flow through pipelines.

The project already has binding 15-year commitments from shippers and the backing of the Canadian Association of Petroleum Producers.

It involves construction of 674 miles of new pipeline and the reversal of 909 miles of existing line currently running from Edmonton, Alberta, to Clearbrook, Ill.

Committed shippers will have a guaranteed 162,000 bpd, leaving the rest for spot shippers.

The announcement comes on the heels of Enbridge’s recent announcement that it is holding an open season for expansion of its Spearhead pipeline to 260,000 bpd from 175,000 bpd, with the first of two phases starting in 2009.

The line is from Chicago, to the Cushing hub in Oklahoma.

—Gary Park