Enbridge launches Southern Access crude pipeline open season

Enbridge Inc. has launched a binding open season to solicit commitments from shippers for capacity on its proposed 165-mile Southern Access Extension crude oil pipeline, to be built, owned, and operated by subsidiary Enbridge Pipelines (Illinois) LLC. The new pipeline will transport crude from Enbridge’s Flanagan terminal in Pontiac, Ill., to Patoka, Ill., effectively extending Enbridge Energy Partners LP’s Lakehead System.

Enbridge will build the 24-in. OD pipeline as a stand-alone project with an anticipated in service date of early 2015. Diameter of the pipeline could be increased, depending on open season results. Committed shippers will be asked to commit capacity only to Southern Access and will not be required to make long-term commitments to ship on the Lakehead System.

Enbridge has already received sufficient capacity commitments from Marathon Petroleum Co. LP to build the 24-in. pipeline as proposed (OGJ Online, Dec. 7, 2012). This open season provides an opportunity for additional shippers to secure termed space on the pipeline. Shippers will have the option of selecting either 10- or 15-year terms as well as one of three available commencement dates for service.

The open season ends Jan. 18, 2013.

Contact Christopher E. Smith at chriss@ogjonline.com.

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