CALGARY, Alberta, Nov. 26 (UPI) — Canadian pipeline company Enbridge announced it reached an agreement with shippers for the expansion of an oil pipeline in Alberta province.
Enbridge said it agreed to terms for a $1.8 billion expansion to its pipeline system between Edmonton and Hardisty, Alberta. The expansion envisions a 2015 capacity target of 800,000 barrels per day.
The company said the new line agreements would fall within its competitive toll agreement and include a 25 cent surcharge on shipments.
“The agreement with shippers on terms for the expansion continues our collaborative relationship, ensuring that we provide the facilities and services they need to maximize the value of their crude oil,” Stephen Wuori, president of liquid pipelines for Enbridge, said in a statement.
Enbridge aims to build the twin Northern Gateway pipeline from oil sands operations in Alberta to ports along Canada’s west coast. Critics of tar sands oil, the type of crude found in Alberta, say there are concerns about the environmental consequences associated with pipeline developments.
Enbridge said the Edmonton to Hardisty line should begin construction by 2014 once it gets full support from the government.