Enbridge to increase Seaway capacity

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Enbridge announced plans to expand the Seaway pipeline and its Flanagan South project

 

Josh Lewis ,
27 March 2012 04:45 GMT

Canadian pipeline operator Enbridge has announced plans to more than double the capacity of its Seaway oil pipeline following increased demand.

Enbridge and its partner Enterprise Products Partners will build a 512 mile, 30 inch diameter twin line that will run along the route of the Seaway pipeline from Freeport, Texas, to Cushing Oklahoma.

The addition will increase the capacity of the pipeline by 450,000 barrels per day to 850,000 bpd.

Enbridge said the expansion was supported by additional commitments received during the supplemental binding open commitment period, with terms ranging from five to 20 years.

Enbridge also announced it planned to proceed with the expansion of its Flanagan South project which would add incremental capacity for shippers seeking transportation from Flanagan, Illinois, to the US Gulf Coast.

The Flanagan South pipeline will also be used to transport some of the additional commitments for the Seaway pipeline from Flanagan to the Seaway System.

“Expansion of the Seaway pipeline, along with Enbridge’s Flanagan South project, will provide crude oil producers in the Bakken region and other emerging crude oil sources capacity to move secure, reliable supply to US Gulf Coast refineries, offsetting supplies of imported crude,” Enbridge chief executive, Pat Daniel, said in a statement.

Enbridge said the first phase of the reversal of the Seaway pipeline was nearing completion and would provide 150,000 bpd of southbound takeaway capacity from Cushing to the Gulf Coast by 1 June.

It added pump station additions and modifications, which are expected to be completed by the first quarter 2013, would increase capacity to 400,000 bpd, assuming a mix of light and heavy grades of crude.

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Posted on March 27, 2012, in AMERICAS, Energy, Freeport, North America, Oil, Texas, United States and tagged , , , , , , , , , , , , , . Bookmark the permalink. Comments Off on Enbridge to increase Seaway capacity.

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