By CAROLYN KING
Enbridge said Monday that it and privately held Canopy
Prospecting will develop a unit-train facility and local
pipeline infrastructure in Pennsylvania to deliver Bakken and
other light sweet crude oil to refineries in the Philadelphia
The Canadian pipeline company said it will own 75% of the
joint venture - to be called Eddystone Rail Co. - and act as
The $68 million project is expected to handle 80,000
bpd when it comes into service in the third quarter of 2013,
and can ultimately be expanded to receive up to twice that
amount of oil for subsequent transport by barge or pipeline to
nearby refineries as early as mid-2014, it said.
Enbridge has a number of projects under development to take
advantage of growing North American oil and gas
production. Last last week, it announced plans to proceed
with a 1.8 billion Canadian dollar ($1.81 billion) expansion of its mainline system in
the oil-rich western Canadian province of Alberta.
The joint venture with Canopy will be the largest unit-train
facility able to receive crudes from North Dakota, where
production is booming, directly into Philadelphia-area
refineries, the partners said.
Enbridge noted that, by early next year, its Bakken Expansion Program will add 200,000
bpd of increased export pipeline capacity from the Bakken
resource play - 80,000 bpd into Berthold, N.D. and
120,000 bpd into Cromer, Manitoba - taking Enbridge's
total capacity from North Dakota to 475,000 bpd.
"Rail is the fastest way to provide increased export
capacity out of the Bakken, creating a near-term solution to
transportation bottlenecks and the resulting crude oil pricing
differentials," said Stephen J. Wuori, president of Enbridge's
liquids pipelines unit, in the statement.
Enbridge will seek environmental, local and regulatory
approvals to facilitate in-service for the Eddystone project in the third quarter of
2013. Its partner, Canopy, is a Pennsylvania-based company
focused on niche petroleum midstream and process
Dow Jones Newswires