Summary Box: Enbridge spending $3.8B on pipeline

Summary Box: Enbridge spending $3.8B on pipeline

Associated Press

INVESTING BIG: Enbridge Inc. will spend nearly $4 billion on construction to increase the flow of Canadian oil sands crude to the U.S. Gulf Coast. Canada's biggest crude transit company will expand its Flanagan South Pipeline from Flanagan, Ill. to Cushing, Okla. It will also improve the jointly owned Seaway Pipeline from Cushing to the U.S. Gulf Coast at Houston, where crude is expected to start flowing in June.

END GAME: Enbridge hopes to new construction will address supply issues in the U.S. Midwest and boost prices and producers' bottom lines. Oversupply at Cushing from growing domestic supplies, has eroded the value of North American crude. Draining that oil to refineries along the coast would likely act to lift prices and increase revenue.

THE BILL: Enbridge will spend $2.8 billion for the Flanagan project and $1 billion for a twin line and extension of Seaway, which is partly owned by Enterprise Products Partners LP.

View Comments