LAKEHEAD SYSTEM EXPANSION WELL UNDERWAY
Progress was steady in 2008 on Lakehead System expansions, with critical milestones
met and project completion goals on course for 2009.
Margaret Liu
Senior Analyst, Investor Relations
“Our mission in Investor
Relations is to provide our
unitholders and shareholders
with the most useful and
up-to-date information available
to help them make informed
investment decisions.”
Southern Access
Stage 1 of our Southern Access Expansion project – a new 42-inch diameter pipeline –
was completed in 2008. Running from Superior, Wis., to Delavan, Wis., this 321-mile
section of the 454-mile Southern Access Expansion pipeline is now contributing to the
Lakehead System revenues with approximately 190,000 bpd of incremental capacity
and its related transportation rate surcharge. Stage 2 of the Southern Access Expansion,
between Delavan and Flanagan, Ill., is anticipated to be complete mid-year 2009. When
Stage 2 is complete, the Southern Access Expansion will provide some 400,000 bpd of
incremental capacity on the Lakehead System.
The proposed Southern Access Extension – an Enbridge Inc. project to connect our
Southern Access Expansion pipeline at Flanagan to a crude oil pipeline hub at Patoka,
Ill. – continued in the permitting and regulatory review process in early 2009. When
completed, the 170-mile, 36-inch diameter Southern Access Extension pipeline would
provide up to 400,000 bpd of incremental capacity into the Patoka Hub.
The future capacity of the Southern Access Expansion pipeline can be increased to
1.2 million bpd through additional pumping stations to accommodate future deliveries
via the Alberta Clipper pipeline.
Alberta Clipper
During 2008, Enbridge Inc. commenced construction in Canada on the Alberta Clipper
project while permitting and regulatory reviews – federal, state and tribal – continued
for the project in the United States, with several key permits approved in 2008 and
others well into the review process in early 2009. Construction on the U.S. segment
is anticipated to begin in mid-2009. The Partnership, along with Enbridge Inc., is
developing this 1,000-mile, 36-inch diameter pipeline project, which will transport
heavy crude from Hardisty, Alberta, to Superior. The approximate 330-mile U.S.
segment of this new pipeline – from the international border near Neche, N.D., to
Superior – will be constructed by the Partnership at an estimated cost of $1.2 billion.
The Alberta Clipper project, anticipated to be in service in 2010, will have an
initial capacity of 450,000 bpd, expandable up to 800,000 bpd with additional
pumping stations.