By CAROLYN KING
Enbridge said Friday it will move ahead with a 6.2 billion Canadian dollar ($6.25 billion) plan to expand pipeline capacity to ship out growing light-oil output from North Dakota and Western Canada.
The program is one of several projects the big Calgary, Alberta company and others have unveiled this year to respond to booming North American energy output, particularly in the continental Midwest, where pipeline constraints have led to bottlenecks and lower prices for the region's crude.
The multi-year expansion should boost Enbridge's ability to ship oil to refineries in Ontario, Quebec and the US Midwest by some 400,000 bpd, the company said.
Last month, Enbridge announced a C$1.8 billion expansion of its Edmonton-Hardisty line in Alberta as well as a rail venture in Pennsylvania to deliver Bakken and other light sweet crude oil to refineries in the Philadelphia area.
The latest program will involve expansion of the company's North Dakota regional pipeline system, expanded capacity on its US mainline system and other infrastructure, and will provide access from the Enbridge system to refinery markets in eastern Canada and the US Midwest.
The company will jointly fund the program with its Enbridge Energy Partners, L.P. affiliate, with the latter investing C$3.4 billion.
Dow Jones Newswires