Enbridge, partner to ship Canada, Bakken crude to US Gulf refineries

15 February 2013 15:12  [Source: ICIS news]

HOUSTON (ICIS)--Energy infrastructure firms Enbridge and Energy Transfer said on Friday that the two companies plan to convert existing US natural gas pipeline capacity to ship crude oil from Patoka, Illinois, to refineries on the eastern US Gulf Coast.

The project would, if realised, open the eastern US Gulf Coast refining market in Louisiana to crude oil from western Canada and North Dakota’s Bakken region.

The companies said the converted 700-mile pipeline project could have a crude shipping capacity of 420,000 to 660,000 bbl/day - depending on the crude slate and the level of shipper subscriptions.

The project could be in service by 2015, subject to approval by the US Federal Energy Regulatory Commission (FERC).

The crude from Canada and the Bakken would reach Patoka through existing pipelines as well as through Enbridge's Southern Access Extension pipeline, which is under development.

The eastern Gulf Coast market is a highly attractive market for Canadian and Bakken crude, but it is not currently accessible by pipeline, the companies said.

The pipeline project would help solve “critical logistics bottlenecks” in North America by connecting oil reserves from Canada and the Bakken to the attractive refining markets near St James, Louisiana, they added.

Enbridge, based in Calgary, Alberta, and Energy Transfer, of Dallas, Texas, would each own 50% of the joint venture. Enbridge's participation in the venture is subject to a minimum level of shipment commitments being obtained in an open season.

By: Stefan Baumgarten
+1 713 525 2653

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