Enbridge: Long Announcement For New Bakken-Related Projects

From Oil & Gas Journal: 

ONEOK may not have gotten sufficient shipper support to build its Bakken Crude Oil Express pipeline (going south) but Enbridge obtained enough support to go ahead with its Light Oil Market Access (LOMA) Program (going east to Canadian terminals and east to Chicago-area refineries).

The increased Enbridge capacity is designed to carry oil from the Bakken as well as from their Cardium and Viking formation production in Alberta (all light oil).

Data points regarding new takeaway capacity program:

• will deliver an additional 400,000 bopd to refiners in Ontario, Quebec, and Chicago-area refineries
• will increase pipeline capacity on Enbridge's North Dakota regional system
• will further expand US mainline system
• will upgrade its Canadian mainline terminals
• will expand its Eastern Access Program
• $6.2 billion program; will enter service at varying dates between 2014 and early 2016
• in addition, Sandpiper (North Dakota System): expand from 225K to 580K bopd
• Sandpiper pipeline, 965 km; 24-in od, from Beaver Lodge, ND, to Superior, WI
• Will twin Sandpiper's exisitng 210K bopd North Dakota System mainline by adding 225K between Beaver Lodge, ND, and Clearbrook, MN; 375K bopd between Clearbrook, MN, and Superior, WI; cost of the Sandpiper existing line: $2.5 billion
• Beaver Lodge is the oil field where the first oil well in North Dakota was discovered; south of Tioga;
• Subtotal: $6.2 billion + $2.5 billion --> 8.7 billion

Previously announced:

• expand Eastern Access Program: full reversal of Line 9 to ship Bakken and western Canadian crue to refineries in Ontario and Quebec; add 80K bopd capacity at Ontario and Quebec
• Eastern Access Program also includes expansions between Griffith, IN, and the US-Canadian border near Sarnia, Ontario
• Eastern Access Program expansion estimated at $3.2 billion, including the $200 million Toledo Pipeline expansion 
• Subtotal: $3.2 billion

Also announced earlier:

• a 265 km, 24-in od, Southern Access Extension Pipeline from Flanagan, IL, to Patoka, IL; estimated $800 million; initial capacity will be 300,000 bopd; contract for supply will be Marathon Petroleum
• Enbridge could increase capacity if demand is warranted (additional horsepower or increasing od to 30 inches
• Subtotal: $0.8 billion

Chicago-area refineries have shifted interest to Bakken and Canadian light oil

• Enbridge will expand its US mainline Lakehead System between Flanagan, IL, and Griffith, IN; will build a 122 km, 36-in od twin of its existing Line 62; initial capacity of 570K bopd; $500 million
• will also increase capacity of its 42-in od Line 61 from Superior, WI, to Flanagan, IL, to its full 1.2 million bopd; $1.3 billion
• Subtotal: $0.5 billion + $1.3 billion --> $1.8 billion

Enbridge plans to expand its Canadian mainline terminals to accommodate the additional light oil volumes and expand flexibility.

Total, although I may have missed something or double-counted (full details are at the link): $14.5 billion? 

When I saw this I thought:

CLR may be the face of the Bakken, among producers, but Enbridge is the face of the Bakken among the pipelines. Of course, ONEOK is the face of the natural gas producers in the Bakken.

Note how Enbridge is "twinning" new pipeline with existing pipeline. It begs the question why TransCanada refused to "twin" its Keystone XL pipeline along the original Keystone pipeline; the argument that it was the shortest distance seems a bit lame after all the delays and even the possibility of being "killed" again. Enbridge, meanwhile, keeps picking up "shipper support."