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Enbridge Will Expand Edmonton Terminal for Oil Sands
News Articles | Bloomberg | Edward Klump | September 30, 2010
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Sept. 29 (Bloomberg) — Enbridge Inc., owner of Canada’s largest natural-gas distribution company, said it will expand the tank capacity at an Edmonton, Alberta, terminal by 1 million barrels to handle rising oil-sands production.
The project will cost about C$260 million ($252 million) and is scheduled for completion by late 2012, Calgary-based Enbridge said in a statement today. The expansion of the facility, currently capable of holding about 4.6 million barrels, will include building four tanks and installing a short segment of pipeline and related infrastructure.
Construction is expected to begin in 2011, subject to regulatory approval, the company said. An initial phase is scheduled to be in service in the third quarter of 2012, followed by a second phase by the end of that year.
“These additional tanks will help ensure the necessary infrastructure is in place to accommodate increased oil volumes anticipated in 2012,” Stephen Wuori, an executive vice president at Enbridge, said in the statement.
Oil sands are saturated with a form of petroleum called bitumen which producers can extract using steam or hot water. Canada’s oil-sands output is forecast to rise to 3.5 million barrels a day in 2025 from 1.5 million barrels a day this year, the Canadian Association of Petroleum Producers said in a June report.
Enbridge rose 50 cents to C$53.30 as of 4:37 p.m. on the Toronto Stock Exchange.
