The new pipeline interconnects between the Enbridge Pipelines (Saskatchewan) system and a crude oil rail terminal near Cromer, Manitoba owned by Tundra Energy Marketing.
Scheduled to enter service in the fourth quarter of 2014, the pipeline between the Enbridge system and rail terminal will deliver segregated batches of light sweet, light sour or Midale crude oil from the Westspur and Bakken expansion pipelines into Tundra’s rail terminal, which is managed by CN Rail.
Currently, the rail terminal handles 30,000 barrels per day (bpd) with a capacity in excess of 60,000 bpd.
Enbridge Income Fund Holdings president Perry Schuldhaus said that this connection is an attractive, low risk investment opportunity for the Fund, and the option to become a partner in the rail terminal provides potential future growth
"The interconnection investment complements the Fund’s extensive liquids pipeline asset base in Saskatchewan and Manitoba and provides our customers with transportation optionality and enhanced access to premium downstream markets," Schuldhaus added.
The project will be fully backstopped by Tundra under a five-year Financial Support Agreement (FSA), which also provides Enbridge with an option to acquire 50% Tundra’s rail terminal at a later date.
Â
