"The Calgary-based company announced a final investment decision on Friday to proceed with the first phase, which will cost $1.4 billion US to add 150,000 barrels per day of capacity on its Mainline system and an additional 100,000 barrels per day to its Flanagan South pipeline. The project should be completed in 2027. "We see supply kind of gradually growing," and these pipeline expansions are meeting that need, said Colin Gruending, Enbridge's president of liquids pipelines, while speaking to reporters on Friday."
"These proposals come at a time when Alberta is pursuing its own pipeline project and there are renewed discussions about resurrecting the failed Keystone XL pipeline. There are also concerns about pipelines filling up completely in the next few years, as oil production continues to rise to new record highs. When export pipelines reach their capacity, there can be an oil backlog, causing prices for Canadian crude to fall and lowering royalties for governments."
Multiple proposed expansions and upgrades to major Western Canada pipelines would noticeably increase export capacity, roughly equating to building a large new pipeline. Enbridge announced a final investment decision for a first phase costing $1.4 billion US to add 150,000 barrels per day on its Mainline and an additional 100,000 barrels per day to Flanagan South, with completion targeted for 2027. Trans Mountain is exploring flow-enhancing measures such as drag-reducing agents and stronger pumping stations to increase throughput without changing pipe size. Rising production and full pipelines risk backlogs that depress Canadian crude prices and reduce government royalties.
Read at www.cbc.ca
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