Enbridge Inc. (NYSE:ENB,TSX:ENB) and Energy Transfer announced today that they have entered into an agreement for pipeline access to the eastern Gulf Coast refinery market.
As quoted in the press release:
The project will involve the conversion from natural gas service to crude oil service of certain segments of pipeline that are currently in operation as part of the natural gas system of Trunkline Gas Company, LLC, a subsidiary of Energy Transfer Partners, L.P. and Energy Transfer Equity, L.P. This agreement is subject to approval by the Federal Energy Regulatory Commission (FERC) of Trunkline’s July 2012 request to abandon certain designated segments of pipeline from natural gas transmission service. The converted 30-inch diameter crude oil pipeline is expected to be in service by 2015. It will have capacity of up to 420,000 to 660,000 barrels per day (bpd) depending on crude slate and the level of subscriptions received in an open season to be conducted in the near future.
Enbridge’s President and CEO, Al Monaco, said:
Connecting the Patoka hub to the St. James hub is an important component of our broader plans to open up access to the eastern Gulf Coast crude oil market and responds to significant interest from both producers and refineries.