Enbridge To Proceed With New Pipeline
(Calgary, Alberta) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) announced today that it has secured
sufficient capacity commitments from shippers to proceed with its Gulf
Coast Access project offering crude oil transportation from its terminal
at Flanagan, Illinois, to the U.S. Gulf Coast. Enbridge also announced
that, in response to shipper requests, it will hold a second open season
early in the new year to provide an opportunity for shippers to
subscribe for additional capacity.
Coast Access project will involve construction of an additional line
from Flanagan south to Cushing, Oklahoma following Enbridge's existing
Spearhead Pipeline right-of-way. This line is expected to be in service
by mid 2014 at an estimated capital cost of approximately $1.9 billion
depending on the final scope of the project. From Cushing, crude oil
will move to Houston and Port Arthur, Texas on the Seaway Pipeline
system owned by a joint venture between Enbridge and Enterprise Products
The binding open season
period on the Flanagan South segment of the project will begin at 8 a.m.
CDT, Wednesday, January 4, 2012, and continue until 12:00 p.m. (noon)
CDT Friday, February 10, 2012.
binding open season will be held on the joint venture Seaway Pipeline
system to provide an opportunity for additional capacity subscriptions
originating at Cushing.
"For those shippers
seeking timely capacity for growing supplies produced in Western Canada
and the Bakken to the Texas Gulf Coast, the Gulf Coast Access project
offers near-term solutions through the cost-effective and efficient use
of existing facilities and rights-of-way," said Stephen J. Wuori,
President, Liquids Pipelines, Enbridge Inc. "Through a second open
season on the Flanagan South Pipeline, we will be able to offer capacity
to new shippers, as well as providing the opportunity for those
shippers who have already subscribed to capacity from Flanagan to the
Gulf Coast to add to their existing commitments."