CHICAGO Enbridge Inc.
plans to invest $6.2 billion to bring new sources of crude oil
to refinery markets in the Midwest, Ontario and Quebec.
The Calgary, Alberta-based
energy company will fund a portfolio of projects in response to
changing oil supply and demand patterns in North America,
including stepped-up crude supplies from areas such as the
The Bakken, which largely
underlies North Dakota, has seen production more than triple
over the past five years to 700,000 barrels per day and it
could reach more than 1.2 million barrels per day in the next
five years, Enbridge said, and additional crude oil production
growth is coming from the Cardium and Viking shale formations
Enbridge expects its projects to
be in service between 2014 and 2016.
Among them is a $2.5-billion
expansion of the companys North Dakota infrastructure,
which includes the construction of a 600-mile, 24-inch-diameter
pipeline which will move Bakken oil from Beaver Lodge, N.D., to
a terminal in Superior, Wis.
Another $800 million will fund
the construction of a 165-mile, 24-inch-diameter pipeline
between Flanagan, Ill., and Pakota, Ill., while a $500-million
76 mile, 36-inch-diameter pipeline will twin with an existing
The cost of expanding existing
pipelines and related infrastructure will total billions more,
Enbridge said. Some projects, such as the boosting of capacity
on Enbridges U.S. mainline system, come as Chicago-area
refineries are shifting toward oil supplies from the west
because prices are more competitive compared with crude from
the Gulf Coast, the company said.
As nontraditional North American
sources such as the Bakken have ramped up their oil production,
energy firms have rushed to add capacity via rail or pipeline
to bring the oil to refineries that historically have relied on
other transmission systems or sources of oil (
amm.com, Dec. 5).