Enbridge will add 900,000 bbl of storage at its Cheecham
terminal in northern Alberta, the company announced on
Wednesday, seeking to handle added bitumen production from the
Surmont thermal oil sands expansion.
The company estimated the project would cost about $300
million. It will include two new 450,000-bbl blend tanks and
convert an existing tank from blend to diluent service.
Enbridge will also install receipt and distribution
manifolds to facilitate transfers to Enbridge's Waupisoo
pipeline and upgrade associated measurement equipment, it
Enbridge reached agreement on the expansion with ConocoPhillips,
operator of the Surmont oil sands project.
"We're pleased to further our relationship with the
ConocoPhillips Surmont partnership by delivering timely and
critical terminaling and transportation services that support
the continued expansion of their oil sands
projects," said Stephen J. Wuori, president of
liquids, pipelines and major projects for Enbridge.
"We continue to work closely with our customers to develop
innovative energy infrastructure solutions that meet their
current and future needs, that utilize existing infrastructure
and energy corridors wherever possible, and that can be built
and operated safely, reliably and with respect for communities
and the environment," he added.
The new infrastructure is expected to come into service in late
2014 and early 2015.
ConocoPhillips began building the 110,000-bpd Phase 2 of the
Surmont project in 2010, with first
production targeted for 2015. Conoco and co-owner Total
currently produce about 24,000 bpd from Phase 1.