Enbridge Inc. announced that it will develop a new industry diluent pipeline with associated capital of up to $1.4 billion, depending on scope, to meet the needs of multiple producers in the Athabasca oil sands region. The base 16-inch diameter scope for the project will be anchored by throughput commitments from the Fort Hills Partners (Suncor Energy Inc., Total E&P Canada Ltd. and Teck Resources Limited) for volumes for the proposed Fort Hills oil sands project and by Suncor Energy Oil Sands Limited Partnership (Suncor) for its proprietary oil sands production. The Norlite Pipeline remains subject to Suncor board approval, as well as customary regulatory approvals.

Enbridge anticipates securing additional long term commitments to the Norlite Pipeline in the near term which could result in an increase in scope to a 24-inch / 20-inch system. This Norlite system would be capable of transporting 270,000 barrels per day of diluent from Edmonton into the oil sands region and has the potential to be further expanded with the addition of pump stations to an ultimate capacity of over 400,000 barrels per day.

Tags: Enbridge Inc.