Canadian company Enbridge has outlined plans for a C$ 3.2 billion pipeline expansion programme designed to increase the flow of oil from Canada to the US.
The company stated that it planned to spend C$ 2.6 billion on flow direction reversal work on a pipeline running between Sarnia, Ontario and Montreal in order to facilitate the transport of Alberta oil sands and Bakken Shale oil to additional refineries.
Enbridge also has plans to spend C$ 600 million on expanding its main pipeline in Canada and the US, which currently ferries more than 2 million bpd, in order to increase supply to the Chicago area.
Enbridge鈥檚 president, Al Monaco, said, 鈥淭he timing is driven by what is really a pretty significant change and a very fast change in the supply and demand fundamentals on this continent 鈥� Basically, you鈥檝e got a massive increase in oil sands and shale volumes, which is totally different from just two years ago when people thought we were in decline. A lot that increase is for light oil.鈥�
Upgrading existing infrastructure is likely a sound move by the company as it avoids many of the regulatory, environmental and financial difficulties involved with the construction of a new pipeline. Monaco cited the examples of the Keystone XL and Northern Gateway pipelines as having been held up by complications involved in acquiring permission to build in different territories.
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Edited from various sources by