Backers of Northern Gateway pipeline emerge

In a filing with Canada’s National Energy Board, Suncor Energy Inc., Nexen Inc., Cenovus Energy Inc. and Total SA said that they plan to ship oil on Enbridge Inc.’s controversial Northern Gateway pipeline. The planned pipeline would transport 525,000bpd from Alberta to Kitimat, British Columbia to ship to Asian markets.
As the companies can sell their oil to Asia at higher prices, they are looking for greater pipeline capacity to export the production to come with their planned major expansions. The pipeline is set to be constructed by 2017 at an estimated cost of CAD5.5 billion. The four companies are among several oil producers that have contributed to the CAD100 million in preliminary funding. China Petroleum & Chemical Corp. is a funding participant for the project and other companies that may be providing financial backing that have yet to be disclosed.
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