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Website intro section for News item: Enbridge Triples Cost Estimate for Pipeline Project (Update2)
Bloomberg.com – Jul 09 1:34 PM
July 9 (Bloomberg) — Enbridge Inc. , Canada’s largest pipeline company, more than tripled the estimated cost of a proposal to help transport output from Alberta’s oil sands
Enbridge May Spend C$350 Million on Pipeline Project (Update3)
By Ian McKinnon
July 9 (Bloomberg) — Enbridge Inc., Canada’s largest pipeline company may spend about C$350 million ($346.3 million) to help transport output from Alberta’s oil sands to refineries in central Canada and the U.S.
The Trailbreaker project might start moving about 230,000 barrels of oil a day by mid-2010, Executive Vice President Al Monaco told reporters today at a Calgary conference organized by Toronto-Dominion Bank.
The project includes reversing the flow on an Enbridge pipeline running to Montreal from Sarnia, Ontario, and using a conduit owned by Portland-Montreal Pipe Line to move the oil to a port in Maine for shipment by tanker to U.S. refineries along the Gulf of Mexico, Monaco said.
“It really provides a good near-term solution to get to market quickly,” he said. “The fact that it’s existing infrastructure makes it fairly straightforward to do.”
Enbridge and TransCanada Corp., both based in Calgary, have proposed larger and more expensive projects to move oil-sands output to the U.S. Gulf Coast, home to about half of the nation’s refining capacity.
In March, Enbridge Chief Executive Officer Pat Daniel pegged the cost of reversing Enbridge’s so-called Line 9 about C$100 million.
The higher cost estimate for Trailbreaker includes building two storage tanks, each capable of holding 150,000 barrels, in Stockbridge, Michigan, Enbridge spokeswoman Jennifer Varey said in a telephone interview.
The proposed pipeline project might also supply refineries in Montreal owned by Petro-Canada and Royal Dutch Shell Plc, Monaco said. “Our view is that 150,000 barrels a day would find its way down to the U.S. Gulf Coast and probably 80,000 would stay in the Montreal refinery area.”
The company is still discussing the project with potential shippers, Monaco said without elaborating.
Enbridge fell 52 cents, or 1.2 percent, to C$41.28 on the Toronto Stock Exchange. The stock has gained 14 percent in the past year.
To contact the reporter on this story: Ian McKinnon in Calgary at email@example.com; Last Updated: July 9, 2008 17:30 EDT