• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • Headlines
    • Latest Headlines
    • Columns
    • Discussions
  • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts
    • CAODC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
  • Industry Data
    • Canada Well Licences
    • USA Market Data
    • Data Subscription
  • Jobs

Enbridge, Energy Partners outline plan for shipping more crude to Gulf Coast

February 15, 20137:16 AM BOE Report Staff

EnbridgeCP

 

CALGARY – Enbridge Inc. (TSX:ENB.TO) and a partner are planning to convert some of their natural gas capacity to ship crude oil from a pipeline hub in Illinois to refineries in the eastern Gulf Coast refinery market.

The Calgary-based pipeline company and Energy Transfer Partners would each own 50 per cent of the joint venture, which they expect to be in service by 2015.

The plan requires U.S. regulatory approvals and Enbridge says its participation will depend on getting a minimum commitment from customers.

The companies say the system would be able to carry between 420,00 and 660,000 barrels per day of crude.

The latest proposal would redeploy a variety of existing pipelines, including part of Energy Transfer’s Trunkline natural gas system, as well as Enbridge’s new Southern Access Extension, which is under development.

Once completed, the joint venture system would span more than 1,000 kilometres from Patoka, Ill., to St. James, La.

The proposal is one of several initiatives being considered to move more crude from the U.S. Midwest and Canadian Prairies to refineries along the coast of the Gulf of Mexico.

Canadian crude is currently being sold at a bigger discount than usual because of a lack of pipeline capacity and growing supplies from North Dakota and other states that are expanding output using advanced drilling methods.

“Connecting the Patoka hub to the St. James hub is an important component of our broader plans to open up access to the eastern Gulf Coast crude oil market and responds to significant interest from both producers and refineries,” said Al Monaco, Enbridge’s president and chief executive officer.

Mackie McCrea, president and chief operating officer of Energy Transfer Partners, said the joint venture would help solve bottlenecks in the North American pipeline system and optimize ETP’s assets.

“Energy Transfer looks forward to developing this project with Enbridge and to establishing a key transportation conduit to link a diversified slate of reliable, long-term crude oil reserves to refineries along the eastern Gulf Coast, while increasing Energy Transfer’s footprint in crude oil transportation,” McCrea said.

However, the safety and environmental impact of oil pipelines has come under increased scrutiny in recent years, particularly after a major spill from an Enbridge pipeline into Michigan’s Kalamazoo River.

Environmentalists, local politicians, landowners and First Nations communities have raised objections to several major projects, including Enbridge’s Northern Gateway and TransCanada’s Keystone XL.

Keystone XL would carry crude and oilsands bitumen from Canada and the northern United States to southern refineries while Enbridge’s Northern Gateway would link Alberta producers to export terminals on the B.C. coast.

Enbridge Northern Gateway

Follow the BOE Report
  • Facebook
  • Twitter
  • LinkedIn
Sign up for the BOE Report Daily Digest E-mail
Latest Headlines
  • Vertex Resource Group Ltd. acquires Mad Oilfield Solutions
  • Athabasca Oil Corporation announces 2020 year-end results
  • Peyto returns to profitability with Q4 2020 results
  • MEG Energy announces full year 2020 free cash flow of $129 million, debt repayment of $132 million and 28% year-over-year reduction in G&A expense
  • Briko Energy announces its 2020 year-end reserves and corporate update

Return to Home
Alberta Gas
CAD/GJ
Market Data by TradingView





    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    • Foxterra
    BOE Network
    © 2021 Grobes Media Inc.