Enbridge Inc. is talking to shippers about building a new $1.6-billion oil pipeline from Alberta to the U.S. Midwest, the pipeline and energy distribution company said Thursday.

"Shipper interest to date has been strong," Enbridge said, adding that demand for the pipeline is growing.

The Alberta Clipper project, a 400,000 barrels-a-day line from Hardisty, Alta. to Superior, Wisc., would bring more oil into the pipeline network that already links U.S. cities like Chicago and Toledo, Oh., and Sarnia, Ont.

Enbridge pipeline underconstruction. (Courtesy Enbridge)
Enbridge pipeline underconstruction. (Courtesy Enbridge)

The Clipper line is just one the company is considering, said Patrick Daniel, president and CEO. "For the future, we are advancing a significant number of new pipeline projects," based on growing supply and demand and increasing oilsands production.

"However, the Company's primary engine of growth is its substantial portfolio of organic projects spanning liquids pipelines, gas pipelines and new growth platforms," Daniels said.

Other Enbridge projects include the $190 million US Spearhead line from Chicago to Cushing, Okla., which will open on March 1.

The Spearhead line will deliver 125,000 barrels a day (bbl/d) of oil and, even before it opens, "we are in active discussions with shippers seeking a near term expansion of the line. "

Enbridge has also confirmed that shippers want to go ahead with the proposed Gateway link, which will move oil from Edmonton to Kitimat B.C., and condensate the other way.

There are plans to increase the diameter of both lines even though neither have been built.

The Waupisoo Pipeline, a $400 million project to bring 350,00 bbl/d of crude from the oilsands in the Fort McMurray region of norther Alberta to refineries in Edmonton, has reached final deals with shippers. The line will have a maximum capacity of 600,000 bbl/d.

Enbridge said profit for the fourth quarter of 2005 rose to $174 million, (52 cents share), compared with $104.8 million (31 cents) in 2004.

Revenue was $2.67 billion, compared with $2.32 billion.

For the year ended Dec. 31, profit was $556 million ($1.65), compared with $645.3 million ( $1.93 ) in 2004.

Revenue was $8.45 billion, compared with $7.81 billion.

Enbridge said profit fell mainly because it sold an investment in AltaGas in 2004, which boosted 2004 after-tax profit by $97.8 million.

The company predicted that "adjusted operating earnings" in 2006 will be between $1.65 to $1.75 a common share.

Enbridge operates crude oil and liquids pipelines in Canada and the United States. It also owns Canada's largest natural gas distribution company, with service in Ontario, Quebec, New Brunswick and New York state.

Ipsco order

Steelmaker Ipsco Inc. (TSX:IPS) said it has a deal with Enbridge committing its large diameter pipe mills to Enbridge projects.

The order runs to about 160,000 tons of spiral welded pipe. Production will begin later this year, and will keep the mill near capacity for the rest of 2006.