Enbridge and BP to Develop Delivery System for Canadian Crude Oil From Illinois to Gulf Coast
29 August 2008
Enbridge Inc. and BP Pipelines (North America) Inc. have entered into an agreement to develop a new delivery system to transport Canadian heavy crude oil from Flanagan, Illinois, to Houston and Texas City, Texas, using a combination of existing facilities and new pipeline construction where required.
The new delivery system is expected to be in service by late 2012 with an initial total system capacity of 250,000 barrels per day (bpd) into the Gulf Coast. Enbridge and BP intend to use the BP #1 System and other existing pipelines north of the Cushing, Oklahoma, crude oil hub with some new pipeline construction south of Cushing, to connect to markets in Houston and possibly Nederland, Texas.
Initial receipts at Flanagan, where the system would interconnect with Enbridge Energy Partners’ Southern Access pipeline, would be approximately 140,000 bpd with deliveries to Gulf Coast markets. The remaining 110,000 bpd would originate from interconnecting pipelines at Cushing.
The project would be timed to coincide with the projected ramp-up of heavy crude oil production in western Canada. It would be complementary to Enbridge’s other market initiatives including the Trailbreaker Project, which is planned to offer Gulf Coast access by tanker from Portland, Maine, by mid-2010; the Southern Access Extension, which is expected to facilitate both heavy and synthetic crude access to Patoka, Illinois, by 2011; and the Texas Access Pipeline, which is positioned to move greater crude oil volumes from Patoka to the Gulf at the time required by the market. (Earlier post.)
The joint investments of the phased capacity additions is expected to be in the range of US$1 billion to US$2 billion.
It might cost less to refine the crude oil in Canada, but perhaps they will be charged CO2 taxes. Every body will soon have to have their metabolism checked and pay a carbon tax for the dirty CO2 comming from our lungs. Perhaps hydrogen can be injected directly into the blood to fuel a human. ..HG..
Posted by: Henry Gibson | 31 August 2008 at 02:15 AM
Only place in Canada with carbon taxes is BC. The reality is that the tar sands produces approximately one million that goes into the central US, already. A continuous pipeline is a natural extension of that already developed system to leverage processing facilities farther south. Of course that is presuming the US pays for the oil. There are off and on plans for building a pipeline to BC, where it would be sold to Asia. The N-Am free trade agreements locks Canada to exporting the oil but does not lock it into selling that oil to the US exclusively. This has been used as a blunt political tool by the Albertan premiere.
Posted by: aym | 02 September 2008 at 08:40 AM