Enbridge Inc announced Tuesday that it has received Governor in Council (GIC) approval by the Canadian federal government on its Alberta Clipper Expansion and Southern Lights Pipeline projects. The receipt of the GIC approval is a significant step towards obtaining the final National Energy Board certificate and other permit approvals in Canada. Certain state and federal approvals for the projects are pending in the United States.
"We're excited to achieve this major milestone towards starting construction on these two projects in Canada," said Patrick D. Daniel, President and Chief Executive Officer, Enbridge Inc. "The Alberta Clipper project is an important component in Enbridge's broader expansion program to enhance pipeline capacity to refining centers in Eastern Canada, the U.S. Midwest and points beyond. Through the expansion of our existing pipeline system - the world's longest crude oil pipeline system - we are able to offer our customers flexible and scalable transportation solutions that meet their needs and strengthen the energy security of North America.
"Our Southern Lights project complements this expansion by providing an innovative solution to increase the supply of diluent for blending with heavy oil produced in Alberta," Daniel added.
Alberta Clipper involves the construction of a new 36-inch diameter, 1,607-kilometre (1,000-mile) crude oil pipeline from Hardisty, Alberta to Superior, Wisconsin. Pending U.S. regulatory approvals the pipeline is scheduled to be in service in mid-2010. The pipeline will have an initial capacity of 450,000 barrels-per-day (bpd) and allow for expansions to increase capacity up to 800,000 bpd. Alberta Clipper will be integrated with, and form part of, the existing Enbridge Pipelines system in Canada and the Enbridge Energy Partners' Lakehead system in the United States. Enbridge anticipates beginning construction on the Alberta Clipper project in Canada later this summer.
Southern Lights is a proposed pipeline that will transport diluent from the U.S. Midwest to Edmonton, Alberta. The project includes reversal of an existing Enbridge crude oil pipeline as well as new construction in Canada and the U.S. When completed, the Southern Lights diluent pipeline will have a capacity of 180,000 bpd. Enbridge anticipates beginning construction in Canada later this summer and the Southern Lights Pipeline is expected to be in service in 2010.
Enbridge Inc., a Canadian company, is a leader in energy transportation and distribution in North America and internationally. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world's longest crude oil and liquids transportation system. The Company also has international operations and a growing involvement in the natural gas transmission and midstream businesses. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. Enbridge employs approximately 5,500 people, primarily in Canada, the U.S. and South America.