Enbridge locks up oil sands pipeline deal
Gary Park
Enbridge has tied the knot in another part of its strategy to link Alberta’s oil sands with downstream markets.
The Calgary-based pipeline said Sept. 20 it has completed a deal with Long Lake oil sands partners Nexen and OPTI Canada to provide an initial 60,000 barrels per day of pipeline capacity from northeastern Alberta to its Hardisty terminal in central Alberta.
The agreement covers an initial term of 50 months starting in late 2006, with provisions to extend the contract term and increase the volume.
The C$3.4 billion Long Lake joint venture is designed to double its output of raw bitumen to 140,000 bpd by 2011. The agreement will also give the shippers the option to use Enbridge’s proposed Waupisoo Pipeline — a 270-mile, 600,000 bpd system to upgraders and refineries in the Edmonton area.
For now, Enbridge’s Athabasca Pipeline, with ultimate capacity of 570,000 bpd, carries production from Suncor Energy, Petro-Canada and EnCana operations to the Hardisty terminal, which has storage capacity of 1.6 million barrels and an extra 4 million barrels at the adjacent Hardisty Cavern facility.
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