Enbridge Approves $2.7 Billion Expansion of Southern B.C. Pipeline System

(Reuters) — Enbridge Inc. on Friday sanctioned an expansion of the southern segment of its British Columbia (B.C.) pipeline system, a project that would cost up to C$3.6 billion ($2.65 billion), after strong demand from crude oil producers.

The company, which posted higher third-quarter earnings on Friday, separately launched an 'open season' for capacity on the northern segment of the B.C. line. Interest in the open season would determine if Enbridge launches a potential C$1.9 billion expansion of that line.

Open season gives oil and gas producers the chance to bid for long-term contracts giving them priority access on a pipeline.

Enbridge said the T-South expansion of its B.C. pipeline system, which runs from near Chetwynd and extends south to the Canada-U.S. border at Huntingdon-Sumas, will add 300 million cubic feet per day (cf/d) of capacity.

If sanctioned, the expansion of T-North segment would add about 500 million cf/d of capacity. T-North connects the Fort Nelson area to the T-South segment and to interconnecting pipelines at the B.C.-Alberta border on the east.

Enbridge expects the T-South expansion will come into operation in 2028, while open season for T-North is expected to end on Jan. 10, 2023.

($1 = 1.36 Canadian dollars)

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