Enbridge to develop $1.6bn pipeline for Fort Hills partners and Suncor

Fort Hills partners (Suncor Energy, Total E&P Canada and Teck Resources) along with Suncor Energy Oil Sands have selected Enbridge to develop a new $1.6bn pipeline to transport crude oil.

The new line will transport crude oil production under long-term transportation commitments to Enbridge’s mainline hub at Hardisty, Alberta.

Said to be an extension of the recently commissioned Wood Buffalo pipeline, the new Wood Buffalo extension pipeline will be constructed from Enbridge’s Cheecham terminal to its Battle River terminal at Hardisty.

Enbridge liquids pipelines and major projects president Stephen Wuori said that the project builds on the company’s relationships with Suncor and Total.

"Securement of this opportunity reflects Enbridge’s strong competitive position in the region, leveraging our existing Wood Buffalo line and our major project execution capability, including preferential line pipe procurement and pipe lay contractor agreements," Wuori added.

As part of the project, a 450km, 30in pipeline will be constructed from Cheecham to the Battle River Terminal, along with associated terminal upgrades.

The pipeline will transport oil from the proposed Fort Hills oil sands project as well as growth from Suncor’s existing oil sands operations.

As much as 490,000 barrels per day of diluted bitumen will be transported by the pipeline. This is produced at the Fort Hills Partners’ project in northeastern Alberta and Suncor’s growing oil sands production in the Athabasca region. The pipeline is expected to come on-stream in the second quarter of 2017.

Upon completion, the Fort Hills oil sands project will become the eleventh oil sands project to be connected to Enbridge’s Athabasca regional infrastructure.

The companies have initially signed the transportation agreement for a period of 25 years, while Fort Hills Partners and Suncor have the right to extend it further for successive five-year terms.

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Image: Canadian company Enbridge building in Edmonton, Alberta. Photo: courtesy of Kyle1278.