Wednesday, September 8, 2010

Enbridge (NYSE:ENB) Building BP (NYSE:BP), Husky (TSE:HSE) Project Pipeline

Enbridge Inc. (NYSE:ENB) has landed the deal to build a pipeline for BP (NYSE:BP) and Husky Energy Inc (TSE:HSE) to transport oil from their Sunrise Oil Sands project.

The largest pipeline builder in the oil sands region, this deal for Enbridge will bring them $456 million, for the 70-mile long line. It will extend from the project site to its Cheecham terminal.

Estimates are the pipeline will be completed by 2013, and will start carrying approximately 90,000 barrels a day, but ultimately will transport 270,000 barrels a day, as production at the site increases.

To meet the growing supply, Enridge also has plans to increase the number of tanks to store the oil at the terminal.

Increasing oil production in the region is helping Enbridge land more jobs, as they're going to expand a line for Cenovus Energy Inc. (NYSE:CVE) at C$185 million, and also will construct another line for Suncor Energy Inc. (NYSE:SU), getting paid C$370 for that job.

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