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Researched by Industrial Info Resources (Sugar Land, Texas)--Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta) plans to spend about $7 billion to replace its aging Line 3 crude oil pipeline.
Enbridge has obtained shipper support for the investment in its Mainline crude oil system, which originates in Edmonton, Alberta, and crosses the U.S. border, ending at its crude oil terminal in Superior, Wisconsin. The Line 3 Replacement (L3R) Program will complement and complete the existing replacement program. When completed, the pipeline will have an estimated capacity of 830,000 barrels per day (BBL/d). Presently, Enbridge is moving a lesser amount of crude oil through Line 3 due to its 45-year-plus age and issues with operating at maximum allowable pressure.
Enbridge also will achieve an incremental capacity increase with the new pipeline, which will have a 36-inch diameter, compared with the old 34-inch diameter. Enbridge decided to increase the diameter due to the wider availability of 36-inch pipe, which is more of an industry standard today, along with 30-inch and 42-inch pipe.
The scope of the project will include almost 1,200 miles of new pipeline, of which approximately 830 miles will span Alberta, Saskatchewan and Manitoba. The new routing of Line 3 will cross the U.S. border near Pembina, North Dakota. The remaining 370 miles will traverse North Dakota, Minnesota and Wisconsin.
Enbridge plans 26 new crude oil pump stations, of which 18 will be located in Canada and eight in the U.S. The new stations will utilize an average of three electric drive pump packages, each rated at approximately 6,500 to 7,000 horsepower, giving a total of 507,000 horsepower or more of new pumping power to support the flow rate. Enbridge also will construct three 330,000-barrel crude oil storage tanks at its terminal in Hardisty, Alberta, to handle the cycling of the increased crude oil capacity.
Enbridge plans to file its regulatory applications in both countries in late 2014. Enbridge expects to perform the majority of the engineering and design work in-house and will act as its own construction manager. Enbridge also will procure all major equipment and pipe.
The pipeline construction will be bid out in yet-to-be-determined spread lengths and locations. Enbridge intends to bid out the pump stations to multiple construction firms as the pipeline grows.
Construction is planned for late in the second quarter of 2016, with a completion and in-service date targeted for late 2017. The project will be managed from Enbridge's offices in Calgary, Alberta, and Superior, Wisconsin, for the Canadian and U.S. project segments, respectively.
The Line 3 replacement program will become the largest capital project undertaken by Enbridge in its history. The $7 billion price tag represents about 19% of Enbridge's $36 billion company-wide, commercially secured investments. The company expects the pipeline to start generating new cash flow by the end of 2017.
View Project Report - 300158900 300158904 300158911 300158912 300158916 300158917
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Enbridge has obtained shipper support for the investment in its Mainline crude oil system, which originates in Edmonton, Alberta, and crosses the U.S. border, ending at its crude oil terminal in Superior, Wisconsin. The Line 3 Replacement (L3R) Program will complement and complete the existing replacement program. When completed, the pipeline will have an estimated capacity of 830,000 barrels per day (BBL/d). Presently, Enbridge is moving a lesser amount of crude oil through Line 3 due to its 45-year-plus age and issues with operating at maximum allowable pressure.
Enbridge also will achieve an incremental capacity increase with the new pipeline, which will have a 36-inch diameter, compared with the old 34-inch diameter. Enbridge decided to increase the diameter due to the wider availability of 36-inch pipe, which is more of an industry standard today, along with 30-inch and 42-inch pipe.
The scope of the project will include almost 1,200 miles of new pipeline, of which approximately 830 miles will span Alberta, Saskatchewan and Manitoba. The new routing of Line 3 will cross the U.S. border near Pembina, North Dakota. The remaining 370 miles will traverse North Dakota, Minnesota and Wisconsin.
Enbridge plans 26 new crude oil pump stations, of which 18 will be located in Canada and eight in the U.S. The new stations will utilize an average of three electric drive pump packages, each rated at approximately 6,500 to 7,000 horsepower, giving a total of 507,000 horsepower or more of new pumping power to support the flow rate. Enbridge also will construct three 330,000-barrel crude oil storage tanks at its terminal in Hardisty, Alberta, to handle the cycling of the increased crude oil capacity.
Enbridge plans to file its regulatory applications in both countries in late 2014. Enbridge expects to perform the majority of the engineering and design work in-house and will act as its own construction manager. Enbridge also will procure all major equipment and pipe.
The pipeline construction will be bid out in yet-to-be-determined spread lengths and locations. Enbridge intends to bid out the pump stations to multiple construction firms as the pipeline grows.
Construction is planned for late in the second quarter of 2016, with a completion and in-service date targeted for late 2017. The project will be managed from Enbridge's offices in Calgary, Alberta, and Superior, Wisconsin, for the Canadian and U.S. project segments, respectively.
The Line 3 replacement program will become the largest capital project undertaken by Enbridge in its history. The $7 billion price tag represents about 19% of Enbridge's $36 billion company-wide, commercially secured investments. The company expects the pipeline to start generating new cash flow by the end of 2017.
View Project Report - 300158900 300158904 300158911 300158912 300158916 300158917
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
