Enbridge Inc.’s wholly owned subsidiary, Enbridge Pipelines Inc., has reached agreement with shippers on the terms of a $1.8 billion expansion of its mainline system between Edmonton and Hardisty, Alberta. The expansion will include a new 36-inch line, plus additional tankage and terminal facilities at Edmonton and Hardisty. Initial capacity of the new line will be 570,000 barrels per day (bpd) with expansion potential to 800,000 bpd; and a target in service date in mid-2015.

The new line and facilities will be included within Enbridge Pipelines Inc.'s Mainline Competitive Toll Settlement (CTS) agreement with the addition of a $0.25 surcharge on all Edmonton to Hardisty shipments. The agreement also provides for an adjustment to receipt tankage fees if the utilization of the new facilities falls below the planned level. Construction of the facilities will require regulatory approval.

Tags: Enbridge Inc.