Enbridge lands $475M Sunrise oil sands deal

CALGARY: Enbridge Inc. has entered into an agreement to provide pipeline and terminal services to the proposed Sunrise Oil Sands Project.

Enbridge, the Calgary-based energy transporter with the world’s longest crude oil and liquids transportation system, said the $475 million project will involve the construction of a new originating (Hartley) terminal at the Sunrise Project, and a 112-kilometre, 24-inch diameter pipeline from there to its Cheecham Terminal, where tanks will also be added as part of the deal.

The Sunrise project is located 60 kilometres northeast of Fort McMurray, Alta., and will have an initial capacity of 90,000 bpd, which will be expandable to 270,000 bpd.

The facilities are expected to be in service in the latter half of 2013.

Under the terms of the agreement, Enbridge will also provide pipeline transportation services on its existing regional oil sands system for up to 90,000 barrels per day of diluted bitumen produced from Phase 1 of the Sunrise Project.

Husky Energy, operator of the Sunrise project, has a 50% working interest in the estimated 3.7 billion barrels of proved, probable plus possible reserves.

The capital cost for Phase I of the project is estimated at $2.5 billion. All phases are to be up and running by 2020.