SK — Enbridge Pipelines Proposes 125km Expansion

August 22nd, 2011

Pipelines and pumping facilities is proposed to be constructed between Canada and U.S.

ESTEVAN, Saskatchewan — Enbridge Pipelines is waiting for regulatory approval of the Bakken Pipeline Project, a proposed expansion of its pipeline system in the Bakken Play. The pipes will stretch for about 125 kilometers from Enbridge's Steelman plant to their other plant in Cromer, where it will be connected with an existing pipeline that carries oil into the U.S.

Part of the project will be the construction of pumping facilities.

"Bakken production is quiete hot right now," says Mark Sitek, senior project director. "Production forecasts continue to go up, and the infrastructure within North Dakota and within Saskatchewan is not keeping up with production increases. Our goal, with this project, is to help get that production into our mainline Enbridge system where it can access all sorts of markets in eastern Canada, in the mid-west U.S. and points south of the mid-west."

Enbridge has already secured all of the necessary right of way for the project. A hearing will be held in Regina on October 4 with the National Energy Board (NEB). First Nations groups are expected be there to oppose the project.

Upon approval, facilities work will start after April 1 of 2012 so that mainline construction work could begin three months afterwards. However, construction work went ahead in the U.S. Sitek hopes the pipeline project will be completed by 2013.

Cost of the project is about $560 million: $210 million on the Canadian side and $350 million on the U.S. side. Sitek cited a lot of benefits not only during the construction phase but once it's finished. With a projected 1,100 person years involved in construction, it will produce a lot of jobs and spin-offs during the construction. The federal government will rake in revenues of $12.5 million and $10 million for the provincial government. Property tax revenues will be an estimated $335,000 in Saskatchewan and $50,000 in Manitoba each year.

Original article from: www.bidocean.com