Newly announced construction projects are rich with Northeastern and Canadian content, a trend strengthened with the unveiling of Enbridge Inc.'s multi-billion-dollar pipeline plans.
After securing the commercial support it needs to proceed, Enbridge revealed it will spend $2.6 billion on eastern access projects geared largely at expanding and improving its pipeline network.
The tab includes $100 million to re-reverse Enbridge's 240,000 barrel (bbl.) per day Line 9B from Westover, Ontario, to Montreal, Quebec. The move is being made to better serve Quebec refineries. Another $200 million will be pumped into expanding Enbridge's Toledo Pipeline, which connects with the Enbridge mainline at Stockbridge, Michigan.
"Securement of capacity commitments for both the Toledo Pipeline expansion and Line 9 re-reversal represents a major step forward for our overall market access strategy,"said Stephen J. Wuori, president of liquids pipelines for Enbridge Inc., in a public statement.
"These projects and the supporting mainline expansions are attractive investment opportunities for Enbridge and Enbridge Energy Partners LP. They will also provide substantial economic benefits to our shippers and the local economies in western Canada and the Bakken region in North Dakota, where the crude oil is produced, and in the midwestern U.S. and eastern Canada, where it will be refined."
The bulk of Enbridge's plans involve mainline expansions. The Spearhead North pipeline between Flanagan and Griffith, Indiana, will be expanded and a 330,000-bbl. tank will be placed at Griffith. Sections of Line 6B in Indiana and Michigan will be replaced.
In an unrelated announcement, Enbridge says it will spend another $200 million developing the Canadian portion of the Alberta Clipper pipeline. The project is expected to raise the capacity of the Canadian mainline by 120,000 bbl. per day.
Elsewhere, Spectra Energy Corp. is improving its northeastern network, with a New Jersey-New York expansion project that will transport natural gas supplies to high-demand markets in northern New Jersey and New York City. The 20-mile line will provide 800 million cubic feet per day once it's completed in late 2013.
"The Project's FERC certificate is the culmination of a comprehensive, multi-year review by numerous federal, state and local agencies,"said Greg Ebel, president and chief executive, Spectra Energy Corp., in a public statement. "This milestone is a crucial step toward completing this project, which will provide critically needed pipeline infrastructure and numerous environmental and economic benefits to the region."