October 2010 Vol. 237 No. 10

Projects

Enbridge Plans Montana, North Dakota And Canadian Expansions

Enbridge Energy Partners L.P. (EEP) and Enbridge Income Fund (ENF) are proceeding to expand crude oil pipeline capacity to accommodate growing production from the Bakken and Three Forks formations in Montana, North Dakota, Manitoba and Saskatchewan.

The Bakken expansion program will increase takeaway capacity from the Bakken play by 145,000 bpd, which can be readily expanded to 325,000 bpd at low cost. EEP and ENF are affiliates of Enbridge Inc.

Stephen J. Wuori, executive vice president, Liquids Pipelines, Enbridge Inc. said, “We anticipate substantial further production growth based on discussions with producers, and our own regional supply analysis. We are well-positioned to provide shippers with attractive transportation options based on our extensive
existing operations in the region.”

The Bakken Expansion Program will involve U.S. projects which will be undertaken by EEP at a cost of US$370 million; and Canadian projects which will be undertaken by ENF at a cost of Cdn$190 million. The program will originate at Beaver Lodge Station near Tioga, ND, in the heart of the Bakken, and will follow
existing EEP and ENF rights of way to terminate at and deliver to the Enbridge mainline terminal at Cromer, Manitoba.

EEP proposed a separate project to expand its pipeline system south of the Missouri River, connecting to Beaver Lodge Station and providing increased access to the expanded North Dakota System. Once on the Enbridge mainline, Bakken production will have access to multiple markets accessible from the mainline and connected pipeline systems. The program is a series of pipeline expansion projects that will provide 145,000 bpd of incremental capacity from North Dakota into the Enbridge Mainline at Cromer, Manitoba by Q1 2013.

EEP and ENF have received sufficient long-term shipping commitments from anchor shippers to enable the Bakken Expansion Program to proceed.

In other news, Enbridge Inc. has entered into an agreement with Suncor Energy to construct the 59-mile, 30-inch Wood Buffalo crude oil pipeline, connecting the Enbridge Athabasca Terminal, which is adjacent to Suncor’s oil sands plant, to the Cheecham Terminal, which is the origin point of Enbridge’s Waupisoo Pipeline. The Waupisoo Pipeline delivers crude oil from several oil sands projects to the Edmonton mainline hub.

The Wood Buffalo Pipeline will parallel Enbridge’s existing Athabasca Pipeline between the Athabasca and Cheecham terminals. An application has been filed with the Alberta Energy Resources and Conservation Board; pending regulatory approval, the new line is expected to be in service by mid 2013.

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