Enbridge proposed to expand its existing mainline system between Edmonton and Hardisty, Alberta by undertaking the construction of a 179km and 36in oil pipeline to transport crude oil.
The company will build the new pipeline with an initial capacity of 570,000 barrels per day (bpd) which can be expanded up to 800,000 bpd and will also construct an additional tankage and terminal facilities at Edmonton and Hardisty.
Enbridge Liquids Pipelines president Stephen J Wuori said, "The Edmonton to Hardisty expansion program will align the capability of our system with our shippers’ plans for how their growth in crude oil volumes will be divided between volumes entering our system at the Edmonton and Hardisty crude oil hubs."
The new pipeline services will be included within the company’s Mainline Competitive Toll Settlement agreement with shippers at an additional cost of $0.25 on all Edmonton to Hardisty shipments, while the facility services will be adjusted to receipt tankage fees if the usage is below the planned levels.
Upon receiving the clearance from certain regulatory approvals, the company is expecting to begin the construction of the pipeline in the quarter of 2014 and is estimating the new pipeline to become operational in mid-2015.
