CALGARY - Enbridge Inc (TSX:ENB) has outlined a pipeline expansion plan that it says can cover the expected oil production increase from Western Canada for the next decade.
Guy Jarvis, company executive vice president of liquids pipelines, said that the replacement of its Line 3 pipeline -- combined with upgrades and adjustments to other pipelines on its mainline system -- should be able to meet industry needs through to about 2028.
The capacity increases would include 375,000 barrels a day achieved by restoring the full capacity of Line 3, plus about 500,000 barrels a day of capacity elsewhere on the mainline system that runs from near Edmonton to Superior, Wis.
Speaking at an investor day in Toronto, Jarvis said that shippers want Enbridge to continue with these expansion plans because they're concerned that competing pipelines won't be built.
His comments come as the future of Kinder Morgan's Trans Mountain project remains cloudy. The alliance between the B.C. Green and NDP parties has vowed to use all means available to stop the project despite it being fully permitted with a scheduled September construction start.
Enbridge's growth plan is dependent on it replacing the Line 3 pipeline, which still requires regulatory approval in Minnesota where it faces a determined opposition.
