Enbridge to go ahead with $6.2B pipeline expansion
Firm hikes dividend by 12%
The Canadian Press
Posted: Dec 6, 2012 4:44 PM ET
Last Updated: Dec 6, 2012 5:31 PM ET
Enbridge Inc. and its U.S. affiliate are spending $6.2 billion on a series of projects to bring growing volumes of Alberta and North Dakota light oil to market.
The Calgary-based company says it has enough shipper support to go ahead with its light oil market access program, which will see an additional 400,000 barrels per day of light oil flow to refineries in Ontario, Quebec and the U.S. Midwest.
"These market access initiatives reflect changing North American supply and demand fundamentals and will create significant value for our customers," said CEO Al Monaco in a release Thursday.
Refineries in the eastern part of the continent currently rely on imported crude, which is more expensive than the domestic oil that Enbridge aims to send their way.
A supply glut of inland crude has been dampening producers' profits, so those companies have been eager to find more lucrative markets for their oil.
The program includes a $2.5-billion expansion to a pipeline system in North Dakota, the heart of the booming Bakken shale formation.
Production in the Bakken has grown from 200,000 barrels per day to 700,000 barrels per day in the last five years. That rate could expand to 1.2 million barrels if there were enough pipelines out of there, Enbridge said.
Another 100,000 barrels per day are expected to flow from Alberta light oil pools such as the Cardium and Viking, which have experienced a renaissance of sorts thanks to advances in drilling technology.
Enbridge is also expanding its U.S. mainline system, boosting Canadian mainline terminal capacity and scaling up projects to ship more crude to Ontario and Quebec.
The projects are expected to come in service between 2014 and 2016.
Enbridge's U.S. affiliate, Enbridge Energy Partners will contribute $3.4 billion to the program.
Also Thursday, Enbridge boosted its quarterly dividend by 12 per cent to 31.5 cents per share.
Top News Headlines
- Toronto mayor fired chief of staff for telling him to 'go away and get help'
- CBC News has learned the details of what precipitated the firing of Mark Towhey as Toronto Mayor Rob Ford's chief of staff — and it was advice from Towhey that Ford needs to 'get help.' more »
- Federal Court won't remove MPs over robocall allegations
- The Federal Court says it won't throw six MPs out of their seats over allegations of widespread vote suppression through automated robocalls in the 2011 federal election. But Judge Richard Mosley did find that fraud occurred in the election. more »
- Alleged Ford crack video seller not responding to calls
- The journalist who broke the story alleging Toronto Mayor Rob Ford was recorded on video smoking crack cocaine says he may never be able to get his hands on the evidence. more »
- Bridge collapse on Washington interstate drops cars into water
- The Washington State Patrol says the Interstate 5 bridge over the Skagit River at Mount Vernon has collapsed, dumping vehicles and people into the water. more »
Latest Business Headlines
- German brewers worry fracking will compromise beer quality
- German brewers are worried that fracking, the process of extracting natural gas from underground shale deposits, will jeopardize the quality of their beer by contaminating the water supply and have asked their government to hold off on passing the fracking regulations it has been drafting for months. more »
- SNC-Lavalin letter says Gadhafi son offered VP post: RCMP
- SNC-Lavalin's ties to Libya's former dictatorship ran so deep the company offered the son of Moammar Gadhafi a six-figure job as a vice president in 2008, according to a newly unsealed RCMP affidavit. more »
- Importers brace for fight over iPods and TVs
- Importers of popular electronics such as big-screen TVs and MP3 players are ramping up their fight against federal tariff changes, accusing the government of misleading them by offering tariff breaks that it planned to claw back later. more »
- Big retailers pull out of $7B credit card fee settlement
- Some of America's largest retailers, including Target Corp. and Macy's Inc., on Thursday filed a lawsuit against MasterCard and Visa, rejecting a settlement reached last year over alleged fee-fixing. more »
- Mobilicity debtholders approve sale to Telus
- The creditors owed money by the financially struggling wireless company Mobilicity approved a deal Thursday that would see the mobile upstart sold to Telus for $380 million, but the sale must still be approved by regulators and the court overseeing Mobilcity's restructuring. more »
Lang & O'Leary Exchange
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
- Toronto Mayor Rob Ford fires chief of staff
- 2nd suspect in Tim Bosma murder case to plead not guilty
- 2 more arrests linked to hacking death of British soldier
- Duffy says he wants to give Canadians 'the whole story'
- Vancouver man abandons Porsche on B.C. ferry
- Chained-teen's mom wants man who pleaded guilty 'to suffer'
- Montreal lifts boil-water advisory
- B.C. teen saves pet dog in 'terrifying' cougar attack
- Neil Macdonald: Harper no Obama when it comes to dealing with scandals