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Oct 13, 2010 11:18 AM

Enbridge Inc announced that its wholly owned subsidiary, Enbridge Pipelines Inc (EPI), will expand the tankage of its mainline terminal at Edmonton, Alberta, by one million barrels at an estimated cost of approximately $260 million, subject to regulatory approval. The project is targeted for completion by late 2012.

This expansion is required to accommodate growing oil sands production receipts both from Enbridge’s Waupisoo Pipeline and other non-Enbridge pipelines. It will be undertaken under terms of the 2010 Incentive Tolling Settlement between EPI and the Canadian Association of Petroleum Producers (CAPP). Enbridge has received a letter of support from CAPP to undertake the project.

Conducted over two phases, the expansion will consist of the construction of four tanks in the North Terminal and installation of a short segment of pipeline and related infrastructure. Subject to regulatory approval, construction will begin early in 2011. Phase I is expected to be in service in third quarter 2012; Phase II in fourth quarter 2012.

The proposed tanks will be built with a number of safety and environmental protection features and will be incorporated into Enbridge’s safety and emergency response plans and procedures for the terminal. Enbridge will take steps to minimize potential impacts associated with noise, traffic, and dust during construction. The work will be conducted within the Enbridge Terminal property in an industrial area in Strathcona County.