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Enbridge ponders U.S. pipe expansions
Enbridge expects to make an early decision on whether to expand two pipeline projects from Chicago that would increase options for producers to ship Bakken crude and Alberta oil sands crude to Texas Gulf Coast refineries.
While the announcement comes amid continuing uncertainty over the future of TransCanada’s Keystone XL project, Enbridge Chief Executive Officer Pat Daniel was careful to avoid any suggestion that his company is taking advantage of its rival’s problems.
He expressed confidence that XL will eventually “get full approval” from United States regulators and receive the necessary Presidential Permit to carry production from Canada into the U.S.
May upsize Flanagan South However, Daniel said that based on responses during current open seasons Enbridge may “upsize” its wholly owned Flanagan South pipeline from Chicago to Cushing, Okla., which is designed to carry 400,000 barrels per day, expandable to 550,000 bpd.
He said there is also a “very good” likelihood that Enbridge may opt to twin the reversal of the Seaway pipeline from Cushing to Houston and Port Arthur, Texas, which is expected to come on stream at 150,000 bpd this June and reach 400,000 bpd by the end of 2012. Seaway is a joint venture with Enterprise Products Partners.
Daniel said the open seasons have included strong interests in 20-year contracts among potential shippers on Flanagan South.
Although the two pipelines would be operated under separate ownerships, they are effectively planned to “move crude all the way to the Gulf,” he said.
—Gary Park
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