Enbridge Leads $18.5 Billion in Canadian Pipeline Project Kickoffs this Summer

Researched by Industrial Info Resources (Sugar Land, Texas)--Canada's Oil & Gas Pipeline Industry is facing a raft of challenges, as big-ticket projects are continuously hit by legal challenges, regulations and other factors causing delays or cancellations: Northern Gateway, Trans Mountain Expansion and, most recently, Enbridge Incorporated's (NYSE:ENB) (Calgary) Line 3. But the industry has some good news in the near-term: Industrial Info is tracking more than $18.5 billion in active Oil & Gas Pipeline Industry projects that are set to begin construction in Canada this summer, nearly 90% of which is attributed to crude-oil pipelines.

Click on the image at right for a graph detailing Oil & Gas Pipeline projects that are set to begin construction in Canada before the end of September, by province or territory.

Among the most notable projects set to begin construction is Enhance Energy Incorporated's (Calgary, Alberta) Alberta Carbon Trunk Line, which would become the world's largest pipeline system to exclusively carry liquefied carbon dioxide (CO2). The system includes a $155 million pipeline that will transport up to 100 million standard cubic feet per day of CO2 roughly 130 miles, from a fertilizer plant and a refinery in an industrial area near South Fort Saskatchewan, Alberta, to oil fields near Clive, Alberta. It will be supported by the $30 million Elk Island Compressor Station near Calgary.

According to Business in Vancouver, the transported CO2 will allow producers to draw another 1 billion barrels of light oil out of mature, largely depleted reservoirs; however, according to Natural Resources Canada, when operating at full capacity it will have the same effect as taking 339,000 cars off the road each year. For more information, see Industrial Info's project reports on the pipeline and pump station.

Enbridge is at work on a trio of projects set to begin construction in southern Ontario in July. The highest-valued is its $75 million St. Clair River Replacement Project, which will upgrade three miles of line--running from Sarnia, Ontario, to Marysville, Michigan--with a thicker structure that will carry up to 540,000 barrels per day (BBL/d) of light crude oil, natural gas liquids (NGLs) and other petroleum products under the St. Clair River. For more information, see Industrial Info's project report.

Enbridge's other two Ontario projects involve the construction of natural gas pipelines: the $30 million Dawn-to-Enniskillen Project, which will carry up to 100 million standard cubic feet per day about 11 miles, from an existing pipeline system in the Dawn-Euphemia township to the Dawn Natural Gas Storage Hub in the Enniskillen township, and the $29 million Stratford Reinforcement Project, which will carry up to 75 million standard cubic feet per day about 11 miles, from Woodstock to the Zorra township. For more information, see Industrial Info's reports on the Dawn-to-Enniskillen and Stratford projects.

In British Columbia, Enbridge is at work on a $20 million compressor station near, which help to provide excess sales gas from its $250 million Tupper West natural gas-processing and NGL production plant expansion in Dawson Creek to the pipeline grid. The company is upping its processing capacity at the Tupper West facility from 180 million to 380 million standard cubic feet per day with the addition of an NGL train, with a production capacity of 7,500 BBL/d.

Last year, Enbridge announced it would sell the project to NorthRiver Midstream Incorporated, a subsidiary of Brookfield Infrastructure Partners (NYSE:BIP) (Toronto, Ontario), as part of its $4.3 billion sale of Canadian natural gas-gathering and processing assets to Brookfield. However, Enbridge said it would continue to support the project until it is completed. For more information, see Industrial Info's project reports on the Tupper West expansion and its compressor station.

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