Enbridge Inc. has entered into shipper commitments totaling 229,000 bpd of capacity on the Waupisoo Pipeline in Alberta, part of Enbridge’s Regional Oil Sands System.
Enbridge will undertake a $400 million expansion of the pipeline to its maximum capacity in order to accommodate these commitments, which include the additional volumes announced in February.
The Waupisoo Pipeline expansion program will provide 65,000 bpd of additional capacity in the second half of 2012 and a further 190,000 bpd when fully in service in the second half of 2013. The new commitments allow for a three-year ramp up to the full commitment amount, with a corresponding ramp-up in revenue to Enbridge.
“This expansion is the latest in a series of contracts and projects Enbridge has secured over the past year, adding $1 billion to our total secured investment opportunities in this corridor,” said Pat Daniel, President and CEO. “The Waupisoo expansion program will begin to contribute to our growth in earnings per share by 2013, and increasingly thereafter as the volumes increase to the full commitment levels. Based on development activity under way within the oil sands on both existing and new projects, together with our strong competitive position as the largest operator in the region, we expect to see continued attractive investment opportunities of this sort for some time to come.”