The company will invest in the Light Oil Market Access Program to increase the pipeline capacity of its North Dakota regional system; US mainline system; Canadian mainline terminal capability; improve the Eastern Access Program; and provide additional access to US Midwestern refineries.
Through the program, Enbridge will provide an increased access of about 400,000 barrels per day (bpd) of light oil to refinery markets in Ontario, Quebec, and US Midwest.
The Light Oil Market Access Program will include numerous individual projects that will be executed by Enbridge’s subsidiaries or affiliates including Enbridge Energy Partners.
Enbridge Energy Partners is expected to invest about C$3.4bn ($3.44bn) to carry out the program.
Enbridge president and chief executive officer Al Monaco said the company’s new investment is a part of the suite of major crude oil new market access initiatives for North American markets.
"It follows on the heels of our $2.7 billion Eastern Access Program announced in May, and our $5.8 billion upsized U.S. Gulf Coast
Access Program announced in March, including a number of projects adding capacity to the existing mainline system announced in May," Monaco added.
In the last five years production from the Bakken formation centered in North Dakota, US has increased from 200,000bpd to 700,000bpd and has the potential to reach up to 1,200,000bpd if proper transportation is available.
A growth in light crude production of 100,000 bpd or more is also anticipated from the application of the latest recovery technologies to the Cardium and Viking formations in Alberta, Canada.
The projects under the Light Oil Market Access Program are expected to begin services between 2014 and 2016.
