TransCanada rival Enbridge pursuing Keystone XL alternative

Enbridge Inc., the largest Canadian pipeline company by revenue, has the commitments it needs from Canadian producers and U.S. refiners to create an alternative to TransCanada Corp.’s Keystone XL pipeline.

Two new pipeline projects for which the Calgary-based company has “significant commitments” will allow Enbridge to move crude from Alberta’s oil sands to Texas coastal refineries, Chief Executive Officer Pat Daniel said in a conference call with investors today.

Enbridge’s line would not face the same opposition or regulatory scrutiny that has slowed progress for the Keystone XL because it duplicates existing routes, Daniel said.

The company, which is now in talks with shippers about the line, doesn’t need a permit from the State Department, which is reviewing the Keystone proposal, because Enbridge’s pipeline does not cross an international border, Daniel has said.

“We expect to conclude those discussions with sufficient volumes to proceed with both segments of the line,” he said today.

The State Department is weighing whether to seek a rerouting of Keystone away from the Sandhills region of Nebraska, where landowners, public officials and environmentalists have said they’re concerned about a spill.

The Nebraska legislature began a special session Nov. 1 to consider whether it can force Calgary-based TransCanada to reroute the pipeline. TransCanada Chief Executive Officer Russ Girling has said finding a new route might kill the project.

Enbridge’s plan is to build two new lines, one from the Chicago area to Cushing, Oklahoma, and the other from Cushing to the Gulf of Mexico.

Same Year

Through its Lakehead system, Enbridge already has the capability to move 2.5 million barrels of crude and other liquids a day to Chicago from Alberta’s oil sands and North Dakota. The new Flanagan South pipeline would move an undisclosed amount of oil to Cushing. From there, Enbridge’s Wrangler pipeline, which it is developing together with Enterprise Products Partners LP, could move 800,000 barrels a day to the Gulf Coast.

The Wrangler could be in service by mid-2013, the same time frame targeted by TransCanada for Keystone XL, Enbridge has said.

8 Comments

  1. rrr

    get it built. in the meantime we can burn these protesters in our fireplaces to keep warm.

    #1
  2. strengthof10

    ‘Fess up, RRR. What oil company do you chair? Exxon, Shell, BP?

    #2
  3. David

    I’m not gonna dirty up MY fireplace with one of those protesters.

    #3
  4. GlenW

    Why wasn’t this made known sooner? I’m not a fan of the Tar-Sands, but I know it will continue, so I am willing to concede that using existing lines and ROW make sense. Go ahead and build it. Stopping the import of this fuel is political suicide, no matter how unpopular it may be environmentally and locally.

    #4
  5. olddispatcher

    So while the Republican Unicam of Nebraska and the Republican Governor of Nebraska argued over this another company did an end run around them and now Nebraska is shut out of this 100%. Good, now they can forget the Special Session they called over this decision.

    It appears that Enbridge has the most important parts of any pipeline project: Through-put agreements and ROW. Financing will likely be easy to get with the background they have.

    By the way…. The protesters in DC, if you look deep enough into their protest, appear to have been protesting the building of the pipeline since they thought if the pipeline was not built it would shut down production in the Tar Sands. All I can say to this is: ???????.

    Now someone needs to do a story on how this will impact Cushing, Oklahoma. I own a home there since I spend so much time in Oklahoma, so it would be interesting to see how many new tanks are going to be built there due to this project.

    #5
  6. olddispatcher

    Once the project money is in place this project should be done quickly. All Enbridge and EPCO seem to be doing is looping an existing line. I would bet that engineering studies would take longer than the actual construction.

    Could at least one other player emerge soon? All one needs to do is look at a map of US pipelines to guess who this might be. It would depend on their current capacity, of course, but that’s what looping is for.

    #6
  7. bob

    LISTEN HEAR – YOU HAVE NOT HEARD THE NORTH EAST AND WEST COAST COMMIES DO NOT NEED ELECTRICITY OR THE NEED TO DRIVE AND USE GAZZ!!!

    THEY LUV CASS SUNSTIEN. HE IS ON GOOGLE IF YA WANT TO KNOW WHAT HE DOES. HE IS OBAMIES COMMIES COMMIE REGULATION CZAR.

    #7
  8. yonny

    Think Enbridge had a plan in place but was waiting for the opportune moment to exercise it? Certainly seems so. Being able to recoup build out costs quicker as the only player and not having to ‘split’ the income with a competitor at the onset had to be a considerations.

    #8