Enbridge to begin refinery projects

Enbridge Inc. and Enbridge Energy Partners, L.P. (EEP) have announced two projects that will provide increased access to refineries in the U.S. upper midwest and in Ontario, Canada for light crude oil produced in western Canada and the U.S. The project consists of expanding the EEP’s Line 5 light crude line between Superior, Wisconsin and Sarnia, Ontario by 50,000 barrels per day, at a cost of around USD 100 million. Enbridge also plans on reversing a portion of Line 9 in western Ontario to allow crude oil movements eastbound from Sarnia as far as Westover, Ontario, at a cost of around USD 20 million. Subject to regulatory approvals, both projects are aiming to be in service by late 2012. The expansion of Line 5 and reversal of Line 9 can be economically achieved with upgrades or modifications of facilities and does not require installation of new pipeline. The project will allow growing light crude production from the Bakken shale and from Alberta to meet refinery requirements in Michigan, Ohio and Ontario. The project provides another much needed transportation outlet for light crude, mitigating the current discounting of supplies in this basin while also offering more favorable supply costs to refiners currently dependent on crudes priced off of the Atlantic basin.

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