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Enbridge announces C$1.8B expansion of Alberta mainline system

Enbridge announced that its wholly owned subsidiary, Enbridge Pipelines, has reached agreement with shippers on the terms of a C$1.8B expansion of its mainline system between Edmonton and Hardisty, Alberta. Initial capacity of the new line will be 570,000 barrels per day with expansion potential to 800,000 bpd; and a target in service date in mid-2015. The new line and facilities will be included within Enbridge Pipelines' Mainline Competitive Toll Settlement agreement with the addition of a C$0.25 surcharge on all Edmonton to Hardisty shipments. The agreement also provides for an adjustment to receipt tankage fees if the utilization of the new facilities falls below the planned level. Construction of the facilities will require regulatory approval. Enbridge anticipates filing an application with the National Energy Board by the end of the year. Subject to the receipt of required regulatory approvals, Enbridge expects to begin construction activities as early as Q1 of 2014.