By the OGJ Online Staff
HOUSTON, June 29 -- Enbridge Inc., Calgary, and Lakehead Pipe Line Partners LP, Duluth, Minn., will proceed with the proposed $450 million (Can.) third phase of the Terrace oil pipeline expansion project.
Terrace Phase III will add 140,000 b/d of capacity to the pipeline system and will complete an expansion first announced in 1997.
Enbridge Pipelines Inc. owns a Canadian pipeline system that connects with Lakehead at the US border near Neche, ND. Enbridge will install additional pumping stations and other facility modifications at a cost of $135 million.
Lakehead will build 120 miles of 36-in. line over five spreads on its system between Clearbrook, Minn., and Superior, Wis. Lakehead will spend $200 million (US).
Lakehead has applied for US regulatory approval, and Enbridge will apply for Canadian approval by the fourth quarter 2001.
Construction could begin in the US as early as January, and the project could be placed in service in mid-2003.
Patrick Daniel, president and CEO of Enbridge, said, "These expansion calls by our shippers confirm the outlook for strong growth in Western Canada crude oil production over the next several years, as large bitumen and synthetic oil projects come on stream."
The Canadian National Energy Board recently approved the $120 million second phase of the Terrace project (OGJ Online, May 16, 2001). It involved a 40,000 b/d capacity increase and 123 km of 36-in. line.
Lakehead Pipe Line Partners LP owns the US portion of what it calls "the world's longest liquid petroleum pipeline." Lakehead Pipeline Co. Inc., an indirect wholly owned subsidiary of Enbridge Inc., holds a 14.5% interest in the partnership.
